Selling a business

M

Mama

Registered User
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Hi,

I'm looking to sell of part of my business and it would be worth approx €30k pa gross. I've a person in mind who I know would be interested but what kind of figure should I expect to get for it. It's a service and overheads would be minimal as it would slot into the other person business.

Thanks
 
Very much depends on what they would be getting for the money.

Would there be an existing customer base?
Are there guarantees of income, contracts etc?
What if any is the conflict with the part of the business your retaining?
 
i was in a business partnership a long time ago that I wanted to get out of, my 'partner' said to me something Ive never forgotten " there's one price if you 'want' to buy, but a totally different one if you 'want' to sell!"
In other words what you think it's worth and what someone else is prepared to pay you for it, may be two totally different things.............
 
mrblues said:
Very much depends on what they would be getting for the money.

Would there be an existing customer base?
Are there guarantees of income, contracts etc?
What if any is the conflict with the part of the business your retaining?
Click to expand...

The 30k I mentioned is existing clients and the income on them that I have at the moment and they have all signed contracts with my company. I don't see a problem with the clients changing over as I can guarantee the level of service they will get.

There won't be any conflict.
 
It's almost an impossible question to answer as it depends on the profitability of the clients.

As a rough guide, I think that accountants pay one year's fee income when acquiring another accountant's clients. However, there is a clawback for any business which is not renewed.

Brendan
 
A lot will depend on the free capacity for extra work that the person you're thinking of has. If they need to hire somone else for example it may not be worth their while
 
What would the tax implications of a sale. Would CGT @ 25% apply. I've read in another post I could receive redundancy from the company.

Thanks for all the help
 
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