Selling or Buying a Small Business/How Much Can I Sell My Business For?
I'm curious how much I could sell my business for. I've never done this before, so I'm not sure which information is required, but here are some details about my business:
- We're in Toronto, Ontario, Canada
- It's a personal fitness training business. We help clients lose weight, gain muscle, etc.
- We're currently doing about $140,000/year in personal training sales, and of that, about $92,000 is profit.
- We have a website that is pulling in about 6-8 leads per month
- There are systems and operations, so if someone was to take over the business, they could hit the ground running.
I don't know if this is enough information, but based on what I have, what do you think my business could sell for?
the business is worth some multiple of the Net Profit or EBITDA of the company. I would need to dig deeper to give you a very accurate answer but in general you can count on a few times profit as a ballpark figure for a sales price. I'm skeptical that you have $92k of profit on $140K of sales however. That is the key. Identifying the true profit potential of the business...