How much can you sell your business for? Well, that depends on many factors, including historic revenues, profit margins, cash flow, industry trends, customer loyalty, availability of potential buyers and their access to capital, barriers to entry by competitors, and a host of other factors. If you are serious about selling, you should certainly consult with an experienced business broker-dealer or similar certified professional. That said, here are a few interesting data points from a recent
Dallas Business Journal article (citing BizBuySell.com). On average, Dallas-Fort Worth small business owners selling their business have an asking price equal to:
- 90% of their annual revenues; and
- 3.28 times their annual cash flow.
The median small business sales price for small business in DFW listed on BizBuySell.com was $223,000. Food for thought.
Thanks for reading this blog in 2013. Hope everyone has a healthy and prosperous 2014!
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