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    2 Replies Latest reply on Dec 8, 2010 1:06 PM by SAFEGUARD

    Questions about selling part of my business

    SAFEGUARD Wayfarer
      I have an interested party that wants to purchase a couple of my accounts. How do I assign a dollar amount to an account? How do I put an amount on future sales? One of the accounts referrs new business 3 - 4 accounts yearly. How can I be compensated for that? Is there any formula to figure this out?
        • Re: Questions about selling part of my business
          Are you intending to strengthen, or create a competitor? If it makes sense to sell them, it would be valued as any other business - expected cash flows based on history. In the process, you are giving up much of your business to that competitor - every conversation you have - every number you give them.

          A similar example: It is my understanding that Outback steakhouse was once going to market Longhorn's operation in new areas. That deal fell through and Outback learned enough to create their own brand that grew faster than Longhorn.

          It doesn't seem like you know the risks here any more than the financials. You might want to see professional help before you dive into anything. You can easily end up without the clients or the cash. Be careful.

          Good luck
          • Re: Questions about selling part of my business
            SAFEGUARD Wayfarer
            Thank you for your comment, Ed. This offer just came out of no where and I appreciate your perspective. I will be very careful making this decision. There is a lot more involed in addition to the questions I asked.