";s:4:"text";s:5303:"The Multiple Method is clearly the way to go. Many people underestimate how complex and challenging buying a business can be. You have probably heard of businesses selling at "x times earnings." The term "multiples" has a specific meaning in business finance. I can afford to make that investment, but I? Down the road I'd really like to have stake in a small bar or restaurant, maybe some kind of local media...just a little taste of different things. Sell a business for sale with a confidential ad or use a business broker. I'm working on buying my first multi-unit house, I do voice work online and I work full-time. (If the owner can make $100,000 per year as an employee they may be less likely to buy a business generating $75,000 of discretionary earnings). Taking on a partner, diversifying, downsizing or even merging can all be attractive ideas. If you’d like to know more about buying an existing business, read The BizBuySell Guide to Buying a Small Business for more information. When buying a small business, every buyer wants to know how much money he or she can expect to make from the business. In comparison, the inverse of a 7x multiple is 14.3%, meaning that the buyer would be willing to pay 7x only if the investment is much less risky. I own a small, profitable printing business that has provided a nice income for me for the past 6 years, but the business is now at a point where revenue and earnings have plateaued and can'?t be grown much further without a significant additional investment. Recently, Pepperdine Private Capital Markets Project (in conjunction with the International Business Brokers Association and M&A Source) analyzed data from its 2018 Q3 Market Pulse survey completed by business intermediaries, M&A advisors, and other business transaction professionals based on their recent deal experiences to determine what multiple businesses were selling for. Over 45,000 businesses for sale on the Internet's largest business for sale exchange. Buying an existing business offers many advantages over a startup. Small business is a difficult road to ride, and it’s not uncommon to want to change things up along the journey. However, this can be quite subjective. Starting, buying, or growing your small business shouldn’t be hard.
A multiple is a way to measure one element of the financial status of a company by comparing two metrics (relevant numbers). A business broker, intermediary or transaction adviser will have access to a number of resources for small-business deal flow data, as well.
The Multiple Method is clearly the way to go. You have probably heard of businesses selling at “x times earnings”.
Small businesses sometimes are seen as wonderful gifts that, when well-nurtured, can produce a lifetime of financial independence and a standard of living much higher than average. For small businesses the employment opportunities of the buyer may also be a factor. Then, go online to BizBuySell, the Internet's largest marketplace for buying and selling a small business, and find your next business venture.