When you want to sell your business its often a shock what the calculated sale price is. Factors such as revenues, duration, inventory and hard assests (such as real estate) all factor in. As a general rule a business will sell for 3-5 times the gross plus a 35-60% value placed on inventory. Then add hard assests if they apply.
What this means is, for example, a business that has 100k gross plus 200k in inventory list for an average of $400 - $600 sale price (assuming leased space). Often after such an evalution businesses decide not to sell.
This is where we come in. As a business incubator we help new and existing companies to further develop by providing services such as management training, marketing expansion, business forefasting or office space. This method of grow to sell allows your company to generate significantly higher revenues to get a much higher asking price.
Business incubators as a catalyst tool for economic development.
Want to grow your business but not sure how? You’re not alone. Century 21 Commercial Incubation gets it, enabling companies and individuals to scale their productivity. This is what we do as a profession, meet our team and discuss the options.