What asking price is the norm for an online business

From: Mick Kennedy <>
Date: Wed 25 Oct 2000 07:20:08 -0500

This may be somewhat off point for this discussion list
but you all may be in the best position to answer my
question or at least provide some guidance. I have
learned so much by reading your posts and responses
over the past year or so and have yet to post a
question of my own.

I have an online business that billed $300,000.00 last
year which I am considering selling to an interested
party. I've heard that 3 times the annual sales is a
pretty reliable formula. Is this overly optimistic or
does this formula lead to a "Shit...I sold it too
cheap" scenario?

I know that there are may aspects to be considered in
the valuation of a company but is there an accepted
rule of thumb that you all can provide me with that may
drill a tunnel of light through this mountain of

Mick Kennedy

Received on Wed Oct 25 2000 - 07:20:08 CDT


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