Help valuing my business

[canadiancoops]

Hi...first post on here so be gentle lol

I am just looking for advice on how to value a business for sale

I have a janitorial business which has all commercial cleaning contracts in place. 6 in total that have all just been renewed for 2 years. Its only a small business so gross income is $53400. However the work is only 26 hours per week so I pay out $20280 in wages per annum. My expenses are only $3000 per year as a lot of companies supply the main cleaning machines so i only buy products and I take $21600 per year as a dividend, leaving net income of $8520. Assets are neglible prob under 1k

If I sell do i value it at 2 x net income = a value of $17040 even though I take a dividend, or should I include the dividend and 2 x net plus 2 x dividend = a value of $60240?

Any help would be appreciated

Thanks

[Wendell Zuchs]

You mean increasing the value of your business before you sell it? I think you can increase the value of your business if the name of your company was already known and trusted because of the services to the clients.

[barbaragabogrecan]

Selling your business can be a difficult task. One of the most important things to do as you prepare to sell your business is determine the value of your business. Cash, property and accounts receivable are a few things to consider when establishing the value of your business for sale.
• Add all of your assets. Assets are of items of value such as cash, trademarks, patents and property. Be sure you add the value of equipment and existing inventories as well.
• Include the value of intangible assets such as business location and industry reputation.


• Use your industry multiplier. Multiply your industry multiplier by your total net profit. The resulting number is the value of your business. You may create your own multiplier where your industry doesn't have an existing multiplier.
I think these points will help you for valuing my business. Thanks

[SuccessNow1]

Do not look at the money amount when tryind to determine the "value" of your business. Yes, it's important the profit margin and ratios, etc. However, what it all boils down to is: how you FEEL about it!
Is it dragging you down? Are you burned-out?

Or, on the other hand, are you excited and 100% passionate towards it? If you are truly happy, and feel in your heart and mind, that it is VALUABLE to you, then continue doing it. It is strictly a matter of opinion.

As far as the money aspect, if I were you, I would look at your income versus your expenses, and if you can continue to be happy at that rate, then definitely continue your pursuit. Take a good look at your life, and ask yourself if this is what you really want!

"Create the life you deserve.
Let's all help each other to succeed!"

[SuccessNow1]

I thought you were trying to decide whether to continue holding on to your existing business. I'm sorry for the confusion.

"Create the life you deserve.
Let's all help each other to succeed!"