[911Rob]

Richard,

Gonna cash out 'eh?
I'm not sure about on line business sales like 'google', 'hotmail', etc. as there has been some huge sales for internet based businesses South side over the years.

I have sold a few businesses and I market businesses for sale. "Simplified" Rule of thumb has always been that the ROI will be between 3 to 5 years. Therefore, we calculate the worth by taking the 'net' income for the next 3-5 years; so if the business has CA Certified financial statements that say there is $200,000/year in profits; then the business value is that times 3 to 5. If I invest my money into this business, I can expect to receive it back in 3 to 5 years. (an example is that McDonald's Restaurant has a 95% success rate in paying back the investment capital within the first 3 years)

Next is the hard assets; land, buildings, inventory, etc. and those are relatively easy to calculate the worth of; however inventory is discounted, especially old inventory.

Then there's good will (blue sky); which an astute buyer will never pay for (thats me), but sellers often over rate the value.

Other factors are the long term stability of the business without the current owner in place; non-competition clauses; clients, added value for "cash" received vs CA certified financials; other considerations; etc.

My two cents from above the line.......... cheers buddy!

I'm planning a trip to see you next year now that your North.