Print this page | Go back to previous topic
Forum nameFinancial Feast
Topic subjectopinion on what to price a business
Topic URLhttps://www.businessownersideacafe.com/forums/dcboard.php?az=show_topic&forum=105&topic_id=351
351, opinion on what to price a business
Posted by hsam, Tue Aug-14-07 06:31 AM
Hi,

I have been selling an accessory for the Nintendo Wii since february this year. It is an accessory that I have designed, and manufacture myself.

This accessory has been reviewed favorably by several top end video game product review sites, and has excellent customer feedback.

I sell the accessory on it's own e-commerce site, and also on ebay. (I advertise with google adwords, and also get sales from links from the review sites).

The profit of the item is good: I currently make about $15 profit on each item I sell. (gross proceeds per sale is $20.99 or more)

Since february I have grossed over $16,000 in sales on this item.

I am now looking into other business ventures, and ideas. I am interested in selling this "business venture" along with the website, and existing inventory. (I have enough inventory to sell another 300 or so accessories)

My question is: How would I go about determining a price to sell this business venture, and how would I go about finding buyers.

Thanks in advance
Joe
360, RE: opinion on what to price a business
Posted by Phanntom, Tue Aug-21-07 05:58 PM
Joe,

You haven't really provided enough info to do any kind of meaningful evaluation.

Based on what you have provided it would appear it's grossing about $32k/year, about 1,500 units. You'll have to come up with an annual net profit figure. Some questions you'll have to have answers to for any prospective buyer will be is the product patented, can it be patented? How quick is it going to become obsolete, and what will I have to do to keep the product updated and current? And, will the buyer have the knowledge to be able to do it.

There won't be much value beyond the cost of inventory simply because there is not enough history to base a future on.

I bought a business a number of years ago much like this one. A single product, a short sales history. I bought the inventory, tooling, technology, business records history, sales literature...everything, for the cost of the saleable inventory. For me it was a no lose deal. As soon as I'd sold the inventory I had my money back...that was 3 weeks. I still have the business and it's been operating for over 10yrs so needless to say I made money off the deal, he got his cash out of the deal so he had it for something else he was planning. We both felt like we'd won.
Good luck
362, RE: opinion on what to price a business
Posted by phardytech, Wed Aug-22-07 08:08 AM
Joe,

Contact Rand Brenner of Brenner & Associates. 800-204-6584.

He may be in a position to help you valuate and sell you business. Tell him that Pat Hardy sent you.

Regards,

Pat Hardy
P Hardy Technologies, Inc.
When Retail Profits Count.
50 Charles Lindbergh Blvd. #400, Uniondale, NY 11553
1-800-896-4022 (phone) 516-342-4825 (fax)

Looking for higher profits in 2007? Visit: http://www.phardy.com/ideacafe to learn how.
364, RE: opinion on what to price a business
Posted by hsam, Mon Aug-27-07 10:08 AM
thank you all for your input.


-Joe