Online Business Valuation
How do you value this business wholesale distribution?
We sell health and beauty. In business for about 3 years. Annual sales were $ 200k, 500k and 700k. We sell exclusively online through four different sales channels. We sell to the user Final 80% wholesale and 20%. We bought our own warehouse of 2500 sq. foot two months ago. What is the best way to determine evaluation on this matter?
Using a multiplier of NET is the starting point. This is your base. So those who seek to buy companies they will focus on stability. Three years is not bad, but five is better. Then they will try to see if your growth is sustainable. Your building is included? What is the cost to value. You have obviously done a good job to get this ongoing activity. You can be the greatest asset company. So if you want cash, the company would be much less. Again, as a previous speaker said, There many variables. There is no simple equation for any value of the company. Good luck and congratulations on building a society prosperous. It is not easy.
What is Roger Montgomery’s valuation formula?
