Toggle navigation
Toggle navigation
Home
DCUM Forums
Nanny Forums
Events
About DCUM
Advertising
Search
Recent Topics
Hottest Topics
FAQs and Guidelines
Privacy Policy
Your current identity is: Anonymous
Login
Preview
Subject:
Forum Index
»
Money and Finances
Reply to "Offers to buy my company basically out of the blue… not sure what to do next"
Subject:
Emoticons
More smilies
Text Color:
Default
Dark Red
Red
Orange
Brown
Yellow
Green
Olive
Cyan
Blue
Dark Blue
Violet
White
Black
Font:
Very Small
Small
Normal
Big
Giant
Close Marks
[quote=Anonymous][quote=Anonymous]I thought a business is supposed to sell for 15 to 20x profits.[/quote] No way a small business sells for 20x earnings (usually). The S&P 500 is currently selling for 38x earnings and you’re buying into companies like Apple and Amazon that have far more durable competitive advantages than some small business in DC earning $2.5 million per year. If you’re an investor, you need to be compensated for the risk that that small business goes bust or disappoints. Five or six times earnings is usual under normal normal circumstances, though he may get more now with interest rates being as low. Additionally, as another poster said, it depends a lot on the specifics of the business. Also, agree that it seems dumb that someone earning $2.5 million a year can’t decide this type of thing on his own.[/quote]
Options
Disable HTML in this message
Disable BB Code in this message
Disable smilies in this message
Review message
Search
Recent Topics
Hottest Topics
