Setting an accurate asking price is vital for the success of your listing. Too high and potential buyers will pass it by, too low and you will not get the best possible sale.

Estimating the value of your asset or business is difficult. You may have an inflated idea of its value based on the time and resources you have invested into it or a justified emotional attachment to it. Or, alternatively, you may have underestimated its value, being unaware of its hidden potential.

As a guide, Flippa recommends you start with a price equal to 2-2.5 x annual net profit. Note: this is your annual net profit in the most recent 12 months.

Remember: Listing your online asset or business for sale at a realistic, achievable price will give it the best chance of sale. This price may even give your business a competitive advantage as more interested buyers can lead to a better result than you expected.

Please do not include inventory value in your asking price if you are selling an e-commerce store. This will be displayed separately. 

Summary:

Flippa recommends you start with a price equal to 2-2.5 x annual net profit. You can also use our free online valuation tool to help you determine the value of your business here: https://flippa.com/valuemybusiness

Detail:

Thinking of selling your asset or business but not sure what asking price to set?

Flippa has sold hundreds of thousands of assets and businesses over the years. Based on that experience, we have recently launched an online valuation tool that can provide you with a guide on how much your asset or business could sell for and what your asking price should be should you decide to list for sale on Flippa. The Valuation Tool is free to use and takes just a few minutes to complete. It compares user inputs with Flippa’s own sales data and historical index to create a very accurate valuation for any website or app. The online valuation tool can be found here: https://flippa.com/valuemybusiness

Please note that this produces a general sale estimation range that should be used as a guide only. For a full professional valuation, we recommend that you contact an independent due diligence company for a full performance assessment - someone like www.centurica.com.

 

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