Excuse me for going anonymous here but, of course, selling a business isn`t neccessarily something you want the world to know until it`s done.
I have an online business that is a service provider in a small industry. Hard assets are nearly non-existent in my business as I have no inventory for sale. I do have a domain name, a good brand recognized by the industry, loyal customers who stay long-term to partake of the literal vault of information I have gathered together. I fear, though, that I am a bit like Martha Stewart (sans the felony convictions or annoying mannerisms ), I AM the business in many people`s eyes.
The business has NO debt and has turned a profit almost since it was started 5 years ago. It`s not burning up the universe revenue wise for MOST people, but in my industry, it does okay and I am able to take enough out of it to make me happy.
I have an interested buyer who is already involved in my business, but pricing it is the issue. BECAUSE there are almost no hard assets, I can`t say, "Here`s what you get". I am leaning towards one year of AVERAGE revenues multiplied by 1.25 (there is no "standard multiplier" for my type of business). The one year of average revenue is basically to compensate me for building the the business. The .25 is for the assets like domain, brand, customer lists, goodwill, all that stuff.
Am I heading down the correct path? The 1.25 mulitplier gets me to the price I want to at least start negotiating at.
Any advice for selling a business with few assets and a ton of happy customers?