polksalet Posted July 17, 2010 Share Posted July 17, 2010 Someone value this business. 15 year computer consulting business 2.5 mill in sales little profit other than 200kish which is paid in salary 10% profit margin How bout it? Quote Link to comment Share on other sites More sharing options...
DMD Posted July 17, 2010 Share Posted July 17, 2010 probably depends if clients are under contract or just come and go. Plus what assets are you buying - anything? Any employees? Quote Link to comment Share on other sites More sharing options...
ts Posted July 17, 2010 Share Posted July 17, 2010 probably depends if clients are under contract or just come and go. Plus what assets are you buying - anything? Any employees? Also ... growth pattern (or lack of same) over the past few years? Any nice clients/deals (ie multi-year contract or large $ single engagement) currently on the horizon ? Quote Link to comment Share on other sites More sharing options...
Grimm74 Posted July 18, 2010 Share Posted July 18, 2010 need more info. Quote Link to comment Share on other sites More sharing options...
Azazello1313 Posted July 18, 2010 Share Posted July 18, 2010 who's staying around and who isn't? assuming the husband/wife are involved in the sales and operation, I'd worry about one or the other spouse (or both) trying to take their business with them to a new venture. often times in cases like this, the "business" is just a shell with a name on it. Quote Link to comment Share on other sites More sharing options...
Clubfoothead Posted July 18, 2010 Share Posted July 18, 2010 Most divorces are due to either infidelity or money problems. If those two aren't screwing someone else, maybe they are screwing you? I don't know the answer to the business $hit. Quote Link to comment Share on other sites More sharing options...
Scooby's Hubby Posted July 18, 2010 Share Posted July 18, 2010 who's staying around and who isn't? assuming the husband/wife are involved in the sales and operation, I'd worry about one or the other spouse (or both) trying to take their business with them to a new venture. often times in cases like this, the "business" is just a shell with a name on it. you would have to have a satisfactory no-compete clause Quote Link to comment Share on other sites More sharing options...
evil_gop_liars Posted July 18, 2010 Share Posted July 18, 2010 With the information given I would say $0. Quote Link to comment Share on other sites More sharing options...
Azazello1313 Posted July 18, 2010 Share Posted July 18, 2010 you would have to have a satisfactory no-compete clause in circumstances like this, I would say there is no such thing. no non-compete is going to make this a worthwhile investment. I say this as someone who's been very close to a situation almost exactly like polk is describing. Quote Link to comment Share on other sites More sharing options...
polksalet Posted July 18, 2010 Author Share Posted July 18, 2010 For clarity it is a buddy of mine. His wife owns 2/3 interest in the business and wants out and apparently has no desire to either run the business nor start another one. She works there and has a lot of knowledge and does a great job. He would like her to work there but you know how fast that could go south.He is the face of the business and would retain all of the clients and all of the techs, most of which have been there many years. Quote Link to comment Share on other sites More sharing options...
Dutch Oven Posted July 19, 2010 Share Posted July 19, 2010 If he really needs to know, he should go to a CPA and get a business valuation done for it. Probably cost about $1,500.00 or so. Quote Link to comment Share on other sites More sharing options...
The Irish Doggy Posted July 19, 2010 Share Posted July 19, 2010 little profit other than 200kish which is paid in salary Do you really mean salary, or is it paid as a bonus to avoid taxes? Maybe this 200K is earnings before taxes? If it is like most small business I know, the husband and wife should have a steady salary/commission included in normal expenses, and then the EBT is paid as a bonus to owners & employees. Quote Link to comment Share on other sites More sharing options...
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