Originally Posted by I_am_a_beginner
My business is running at a 66% profit margin and we have 7 employes, i presume his numbers are true but i will take a look at his numbers this week.
All his accounts are close and are commercial and business warehouses.
If his numbers are true and i keep te name, the contracts are signed for one year and i can net 78k, how much this comapny worth?
Posted via Mobile Device
Just a guess - the business you want to buy and your current business aren't figuring in a fair market wage for the owner? Net income is after all expenses - including a wage for yourself. Don't care if you are a sole prop - your numbers are lying to you if you don't account for your time/wage.
Take a look at some green industry benchmarking reports. Really well run companies net 10-15%