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Transaction value will be pegged to a combination of Seller Discretionary Earnings and Active Customers adjusted up or down according to Average Cart Value and Purchase Frequency. Buyer will either be financial, focusing on SDE, or strategic focusing more on the ACV and PF. Find a buyer by bui...

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Next time, get this stuff figured out at the start and written down in your Operating Agreement. The OA tells everyone what the agreements are on how things like this will be done. You may be able to do that now, but it's going to be more challenging to get to consensus today. You're pretty much...

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Businesses are valued as a function of their cash flow. In a contract service business, the cash flow can be tied to the contracts that are in place. Here is the problem, if the contracts don't go very far into the future, then you won't get a very high multiple of cash flow as a business valuati...

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"Based on the success we are able to achieve" suggests, to me, you are looking at a price that will be tagged to an earn out provision. In other words, the price of the deal will be contingent on you achieving specific revenue targets in the future. If I'm reading this wrong, please correct me...

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YES! You certainly can sell a services business; and, if it is positioned and prepared properly, for pretty great returns too. There are a number of different exit strategies available to you, not ALL of them acquisition. For instance; we have helped service business owners transition (exit) fr...

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Listen to my interview with exit strategist Jock Purtle of Digital Exits here (no opt-in, simple download): https://www.mediafire.com/file/ufbe877j6qupun6/JockPurtleInterview.mp3

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Keep in mind that investors invest for returns. Telling a prospective investor that you want his or her money to grow your business but don't plan on ever generating a liquidation event that pays him or her a dividend is not likely going to work; angel or not. You may be better served with debt...

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A very good question, with many long, complex answers. As a starting point, take a look at flippa offerings to get an idea of common metrics disclosures. You can also search for flippa + metrics + read up on the entire deal flow of site sales. In general, most sites sell for 2.5x-7x yearly pro...

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First of all BE VERY CAREFUL about exiting investors while bringing new ones on. You cannot give investors money back out of proceeds raised from new investors. It's illegal (called Ponzi). This is a VERY tough scenario since you are dealing with two substantial issues - 1) building (or rebuild...

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It is difficult to give you a clear answer without knowing more about your company and product. Are you looking to sell or just want someone to advise you on what/how to do it?

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