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Good question


mtt

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If you haven't already arrived at an answer, I'd say it depends. Are you selling any stock or materials, or just the website and name? In general you would calculate the purchase price of your business by taking your discretionary cash flow and multiplying it by a modifier based on demand, reputation, and customer base. Discretionary cash flow is the actual, verifiable profit your business generates in a year less materials and expenses. Appropriate modifiers fall between 1 and 2.5 in most circumstances. To this number you would then add the price of any assets you are including in the sale.

However, this all assumes that your business is profitable and up and running. If not then it is worth exactly what they are willing to pay for it.

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