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Posted:  05 Aug 2015 00:10  
Ive got a small business consisting of a dozen accounts bringing in $3k in monthly revanue
no color and maybe $2k a year in christmas.  no inventory other than water buckets and a few H20 tanks.
  15 year company all clients are month to month
How do I go about figuring the value of the business.

Tbanks
Posted:  05 Aug 2015 02:22  
Hello from Texas. I am in my 2nd year of a 2 year owner carry note on my interiorscape company, i purchased it for 70,000. when i made the deal there was 65 monthly pay accounts totaling 10,000 a month,(120,000 a year). i have added 5 accounts since the takeover. i have no emplyees and very low overhead. Before i took over the previous business owner had tried to sell to others, no one took the chance and i came in at the right time. i love this business and the hard work it takes to be a success. Im not sure how we came up with the price but wanted to give you an example.
Posted:  05 Aug 2015 03:17  
4 to 13 months Monthly recurring revenue (MRR)

since you have no contracts, and no rental/lease accounts, you are really just selling accounts, not a business so you're at the lower end of the range.

my guess would be 4 to 5 times MRR if you have solid accounts so $12 to $15K.

definitely expect a charge-back against accounts canceling during the payout period.

hope this helps
Posted:  06 Aug 2015 01:16  
Alex is correct.  It could even be as low as 3 months' MRR without contracts.  And, for practical purposes, you could argue that the accounts are worthless, since anyone can just come along and pick them up for free since they aren't under contract.  You're looking at a crapshoot here, because, as Alex pointed out, you won't know how much revenue you'll end up with after the chargebacks/credits for cancellations after the transfer of the accounts to the new owner.
Posted:  06 Aug 2015 08:13  
Thanks  for replies
Posted:  15 Sep 2015 21:51  
I have had my businesss for almost 40 years in various parts of the country.  I have always been able to sell for two to two and half years gross revenue with contracts.
Posted:  23 Sep 2015 04:11  
1Hort1, you must be some salesperson!

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