How to price my business (customer base)

revchrismartin

My wife and I are at a place that we may be done with screen printing. Other things are calling for our attention and we may leave the east for the west coast.

Is there a market for our business that is more than just selling the equipment? If so, how do you put a price on that part of it. I know what our equipment and supplies are worth. We grossed $125,000 in 2013 with some major growth in 2014.

I'd love any advice any of you would have
thanks

revchrismartin

I meant to ask what the value would be?

minimalist

Gross doesn't factor into what a prospect will pay for the business. What is the net will. Since you are in a very competitive industry the outlay for a prospective buyer assume a large risk whether the buyer has experience or not. I'd figure anywhere between 3-5 times net profit plus the current depreciated value of the machines. Inventory factors in but only if it is currently salable. If you owe on the machines you'll have a very difficult time convincing a buyer to take over the payments as banks or finance companies will not release you without writing a new loan.

Buyers want to see multiple orders from large customers. Do you have those? If so then there is possibly some goodwill value that you can add but generally goodwill doesn't float much with a small business.