How much do I sell a product that makes ~$18k/year?
One of my products generates about $18K/year and increasing due to the subscription model. And there's a third party that is interesting in acquiring it.
Just wondering how do you calculate the product worth? And what is the process of transferring (if you have done it).
Any feedback would be greatly appreciated!
You haven't given us much information to work with, but if that's 18k profit per year, a 3x multiple is a good starting point, so $54k.
Thanks for your information. This is the first time. I'm not sure which information is needed in order to calculate it.
Patrick McKenzie (@patio11) did a great write-up a while back: https://training.kalzumeus.com/newsletters/archive/selling_software_business
Thanks, Patrick!
Thats a good problem. Congrats on the interest.
Empire Flippers has a calculator for that. You should get an idea of the price.
Thanks, shree. It didn't know about the Empire Fillpers. It's very helpful.