Viability of Selling a web development business

[Aletheides]

If your doing all the work, then you are the main asset. With you gone, the company isnt worth much.

matt_15 is right - the company is worthless without you. It really is that simple.

you business would not be worth nothing if you are gone. you can only make money on your work which is a service business.

You guys are completely wrong. If he's getting a steady stream of clients from traffic or other promotion then the business is worth something depending on how many clients were coming to him and how much in sales he was making.

Like Namedia is saying, even if there was no system already in place to handle the work its not terribly difficult to find designers on the web. Outsourcing is incredibly easy.

[ubersportz]

Thankyou Aletheides and NAmedia, thats my thought process exactly, there are a million and one web designers out there and also people who can sell advertising, be it through an affliate network program or as direct employment. A business with a solid earnings stream and a solid asset base can defintely not be considered worthless. Whilst it may not sell at the PE of some of the publicly listed companies, 2-3 times yearly NPAT or NP seems reasonable to me.