200+ customers. 4 year hository. 6 dell servers. Net income $12000/year. JSP hosting only.

~14k depending on turnover.

No kidding. Just my dell servers are worth $12k

If the assets are included, then add that on to what I mentioned earlier, however, factor in the asset depreciation too.

Based on my calculation's, your customers are valued at $60 per customer. You might get a little less, or a little more.

Wow, that's surprising. Any new numbers ... that post was from 2002. Just curious.

the post was from 09-28-2007, 07:41 PM

owm

No kidding. Just my dell servers are worth $12k
How old are the servers? They depreciate fairly quick, so you don't have a $12k asset on the books there. Maybe 25% of the 12k, depending on the age of the servers.

You'll get more for your business when you own the hardware, as this means your costs should be reduced compared to renting servers.

I'd say $20k would be somewhere in the ballpark for a business of your size. You'd also have to sign a non-compete for 1 to 2 yrs. The domain would also have to come with that.

Have you included the staff costs to run the business? In other words, let's say you (as the owner) do various tasks that are necessary so the business runs, like answering support emails or things like that, but you do not take a salary for this. If you sell the business, then you presumably would not be working there any longer, and the new owner would have to incur costs to pay for someone to do the tasks that you used to do.

it depends how much time you have, if you are selling fast $14K - $18K and probably the buyer will not be intereted in the hardware, 200 customers is not much, if you have a lot of time and can wait for the right buyer then you can expect more.

Is net income based on accrual or cash-basis accounting? Does it include asset depreciation?