Possibly selling business - Advice required

[Justin]

MISC

• At least 14 x Workbench/Shelf Units
• Supplier contacts in China for all phone related products
• Spare 1500W printer (Needs slight attention)
• Office sundries, monitors, filing cabinet, huge white board, desks etc.
• Very large table for cutting material

ONLINE/DESIGNS

• Giant Sparrows Website
• Etsy Shop - £8.5k per year over the past 4 years. This is after all fees/commissions etc. have been removed and is a very conservative figure.
• NOTH Shop - Again averaging around £8.5k per year over last 4 years after all commissions removed. With a little work this route can be quickly expanded due to recent changes made by NOTHS.
• Facebook, Instagram, Twitter accounts etc.
• Large collection of designs, all unique to GS
• Contracts with several designers/artists and catalogues of their work

Trade Sales - We have 4 regular trade customers buying 3D phone cases. Average over last 4 years is £8.3k per year. These customers have had a difficult couple of years but are picking up again now so again figures very conservative.

We also have 1 customer that has been with us many years and we supply sublimation/photo gifts. The latter is very easy work and great profit. Usually very busy Oct-Dec but this year we have completed orders every month. Average turnover from this one customer around £12k per annum and he is keen to build this business further.

We have an agreement with one of the largest Museums in London to supply 3D printed phone cases. Due to the Pandemic obviously they had to close. On average the Museum tended to order at least £6k - £9k per annum. We have a recent email indicating they will restart ordering once they are back up to full operational speed.

[Justin]

If I can find someone that could take over orders of 3D Phone Cases & Cushions the online business can continue. Yes, I appreciate I can use fullfilment companies but prefer not to. This means we would need someone to buy the Giant Sparrows online business as a whole.

[Justin]

Anyone else that may be interested in this, I'm prepared to negotiate very heavily to get it inot the right hands and carry on our good name...PM me.

[froggy]

Im in the same situation as you Justine and I made a post about this around a year ago.
Ive been told the value is the last 3 years turnover, divided by 3. Plus the value of the used machines.
There is then the tax consideration to be considered too.
Finding someone wont be easy, I have two people interested but they earn more being employed and covered by their employees health insurance and holiday pay, they are big things to loose when going self employed.
Anyways, good luck and I hope you find someone to take over or buy your equipment.

Who told you this "gem" of business valuation nonsense. Its statements like this which mean that over 90+% of businesses advertised for sale dont sell, ever, never ever.
So the business netts £10,000 taxable profit, but turns over £200,000 +VAT with £20,00 of machinery . By your valuation method its worth £220,000 so if I buy it it will take me 22years to get my money back, thats assuming the equipment holds out and I dont need to replace it.

This sort of nonsense post doesnt do anyone any favours.