Is my business worth anything?

[OldShooter]

It sounds like you’re primarily a service business? If so I believe they are ordinarily sold at a multiple of the annual billings as typically the acquiring entity is buying the current book of business. Usually the seller sends a letter of recommendation to all of the current customers, recommending the acquiring entity. The buyer and seller would have to agree on the multiple of annual billings and the period over which the buyer would payoff the seller...

The OP will probably get a better price if he can find a buyer who will value the intangibles in the business like the reputation, employees, etc. IOW someone who wants to buy the going business and continue it.

A buyer who really only wants the customer list will not pay as much and he will probably have little interest in the hard assets and possibly little interest in the employees' skills, customer relationships, and experience. You never know for sure, though. There are no rules.

 

[michelek]

Following. We too have several very small “mom and pop” businesses that might have value to a new operator in the future. Thanks to everyone for their advice and opinions

 

[Oz investor]

Disclaimer: I have no experience in selling a business.

You say your two employees show little interest in purchasing the business. Have you discussed it with them? Since they may be able to start their own business without buying yours and you never expected to get anything from selling, how about making them an offer of a great deal? Maybe the value of the assets and inventory, plus a few thousand dollars paid over a year's time, plus you and your DW continuing to work in an advisory/training role for 30-60 days to help with the transition?

Just a thought.

+1

what about turning your employees into part-owners ( with you keeping an economic interest and available as an in house consultant )