2 Responses to “How can our entrepreneur determine how much to pay for an existing business?”

1. Ed Atun says:

   August 19, 2011 at 3:13 am

   You buy it if the after-tax profits (yearly) are 12% of the buy fee. So if the income is $1,000 a month, you pay $100,000 for the affair.

   You need to have a cushion in case you get a surprise after the buy. Taxes go up or insurance costs double or a competitor opens across the street.

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2. Steve D says:

   August 19, 2011 at 3:13 am

   Hire a excellent accountant to review all the books and come up with the worth of the company.

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