How to sell your SMB\Small Business Server (SBS) consulting practice

Guess what has emerged as the most popular business topic in the fall conference line-up (SMB Nation in early October)?

Answer: How to seel you SBS consulting practice. I have made some calls and done some surveying and folks are confidential sharing with me that they are extremely interested in the how to sell a consultancy.

Makes sense to me. There is nothing wrong with an appropriate exit strategy where you maximize your value. This conference session will help you avoid getting DUPED and this speech alone will add huge value to your disposition strategy.

Thoughts? Lemme know in your comments…..

cheers…harrybbb

Harry Brelsford |SMB Nation| CEO |Microsoft Small Business Specialist (SBSC), MBA, MCSE, CNE, yadda

www.smbnation.com

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1 Comment

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One response to “How to sell your SMB\Small Business Server (SBS) consulting practice

  1. Rob Smorfitt

    Hi. A rule of thumb in sellign small businesses is to pay a price equal to 2 years nett profit. In other words a 50% return on your investment.

    This may seemgood for the buyer and bad for the seller, but it is the old risk/return issue, and buying a business is very risky.

    However the number of years can be increased up to 3 or 4 if the business is bigger and/or it has ongoing signed contracts. In other words the risk is reduced. Businesses with an annual turnover of less than 10m are unlikely to see 4 times nett profit.

    To this price you can add the nett asset value or the fixed assets, depending on how the deal is being structured.

    Most SMB owners however, do themselves in. They either draw everything out the business and so there is no nett profit on the financials, for tax reasons, or they steal the cash sales, or they pay bogus amounts to casual workers etc. All this is an effort to reduce there tax liability.

    However the nett result is a lower selling price.

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