Selling, step 1 of 9
Valuation
We rebuild the last twelve months of numbers, add back one-off costs, and price the business on what it earns and how risky those earnings are. You know your number before a buyer does.
Our part. We build the worksheet and explain every line.
| Subscriptions | 251,300 |
|---|---|
| One-time orders | 160,700 |
| Revenue | 412,000 |
| Coffee and packaging | −198,000 |
| Shipping and fulfilment | −61,000 |
| Advertising | −38,000 |
| Software and apps | −9,600 |
| Everything else | −12,400 |
| Net profit | 93,000 |
| Add back a one-off redesign | +6,000 |
| Seller's discretionary earnings | $99,000 |
What moves the multiple
- Raises it: 61% of revenue is recurring
- Raises it: Five years of trading history
- Raises it: 58% of visits come from search
- Lowers it: Two suppliers, both in one province
- Lowers it: The founder still works 14 hours a week
- Lowers it: Most new subscribers come from Instagram
2.8x to 3.4x earnings
$277,200 to $336,600