Does anyone know how best to sell a 5 yr. old clean, seasoned Wyoming corporation?

**TonyG** · 01-01-2008 09:22 PM

And how much would such an animal be worth?

Any feedback appreciated.

**BusinessAdviser** · 01-01-2008 09:26 PM

With a better sales pitch.

But seriously, you need to put together an analysis of the company so that you can present it to possible buyers. Then you need to seek buyers.

Without knowing more about the company than it is 5 years old and a corporation located in Wyoming, I can't offer much more advice.

**TonyG** · 01-01-2008 09:42 PM

Thanks for the reply. I think I wasn't clear.

This corporation has never been used (ie, it is merely a "shelf corporation"), but was created over five years ago and all fees, taxes, etc. have been paid. The owner now wants to sell it.

Clean (never-used) corporate entities that have been around for several years appreciate, as the new buyer immediately gains the aura of a company that has been around for a while. Further, apparently such corporations find it easier to borrow, etc. (I am no expert; I am inquiring for a friend.)

A further advantage of a Wyoming corporation is a very advantaged tax situation and the most corporate-friendly privacy policy in the US.

If anyone can help me with this question, or point me to a better place to ask this question, I would be grateful. (This is probably not the best crowd for a question like this, but I am just starting my research.)

**Dale King** · 01-01-2008 09:46 PM

Originally Posted by TonyG

Does anyone know how best to sell a 5 yr. old clean, seasoned Wyoming corporation? And how much would such an animal be worth?

Any feedback appreciated.

Tony, to determine the value of your business you need to figure out your gross sales, discretionary income, and EBITDA multiples (earnings from interest, taxes, depreciation and amortization) from actual business sales transactions. EBITDA = Operating Revenue – Operating Expenses + Other Revenue.

Once you determine the value of your business, I highly recommend you list it on GlobalBx.com. I've had several of my clients list their businesses on Global with excellent results. You can list your business for free.

I hope this information was helpful.

Dale King

**TonyG** · 01-01-2008 09:57 PM

Thanks, Dale. But there's no business here; it's just a corporate shell -- ie, it's "clean" (has no history of doing business.)

So I'm not trying to determine the value of a revenue stream -- just the premium a new business would pay for appearing to have been around for five years.

**Dale King** · 01-01-2008 10:02 PM

Originally Posted by TonyG

Thanks, Dale. But there's no business here; it's just a corporate shell -- ie, it's "clean" (has no history of doing business.)

So I'm not trying to determine the value of a revenue stream -- just the premium a new business would pay for appearing to have been around for five years.

In that case - whatever the market will bear. In other words, attach a price to it and list it for sale. The market will determine what it's worth. In essence, it's worth whatever someone is willing to pay you for it. You could also pose your question to the BusinessKnowHowForum, but I imagine they'll tell you the same thing I did.

Dale King

**ltressel** · 01-01-2008 11:02 PM

Hi Tony,

Besides the fact that the entity has existed for 5 years, it really doesn't have much going for it. Yes, it can apply for business credit because an entity should at least be 2 years old BUT it has no established Dunn and Bradstreet account or does it? Without any credit lines, the person buying it would still have to establish that which means even with your concept of "shelf" corporation, it's quite useless and without value.

On the other hand I found this website selling shelf companies for 2k and up. Maybe you have something there...but they are a brokerage for this sorts of things and they might have an established reputation than you.

Aged Shelf Companies

Hope this helps....

LT