The article How To Sell Your Small Business by Kayleigh Kulp contains terrific advise. Before deciding to put your business on the market, make sure you understand the price (and terms) your business will command. This article cites multiples of cash flow that are a good guideline, but don’t assume that these multiples can be directly applied to your business.
I agree with the author that detailed analysis of your specific business, relative to the current market conditions, can accurately predict the sell price you can expect to achieve – your multiple may be different! A multiple is an outcome of a thoughtful analysis; a multiple is not a tool to do the analysis.
Arthur Kaempffe is the President of Klassen Ingalls. He has a broad skill set including finance, marketing and sales, mergers and acquisitions, operations management, and organizational development. He has owned, bought, sold, and built businesses. Arthur is committed to maintaining the client-centric approach that differentiates Klassen Ingalls in the business brokerage/intermediary marketplace. Read more about the people at Klassen Ingalls.
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