The secret to selling a business for top dollar
By on Jul 24, 2007 in Entrepreneur
Dear FSB: Why do you write that small businesses often are valued at, say, five times earnings, while large corporations are valued at perhaps 15 times earnings? I’m contemplating selling my business, which is very profitable and has tremendous growth potential. - Johan Hedborg, Managing Director Faidon Design (faidon.com) Gothenburg, Sweden
Original post by Technology news - Business 2.0 Magazine
1 Comment(s)
By vtabletop on Nov 27, 2007 | Reply
I guess everything breaks down to the demand for the service that the business provides even if it’s less popular. I had come across a domain mogul who buys out domains that could be useful to someone in future and makes a kill selling them. For example ,if a player is rising in his sport and the domain name for his name is still unregistered , he’d buy that as he knows at some point the team managing the player would like to convert his popularity into cash. I think innovation and customer demand is more important than the size of a business when selling it. Many buyers look for the potential in the business than it’s size for instance Youtube that was bought out by Google at an unprecedented price.