What is a fair asking price for a Turn Key Letterpress shop?

I am thinking of putting my Letterpress business up for sale toward the end of the year and I was just wondering if anyone knows of a fair formula for coming up with a sale price? I’ve heard that one year gross revenue is always a good place to start. I have no receivables or payables as I collect and pay as I go. The business is very profitable and last year, (my second full year in business), my sales were up nearly 150% and it looks like it’s going to be up even more this year! If anyone has any ideas, I would be glad to hear them.

Thanks,

JAW

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Can you tell me what would all be included?
Call me if you like.
619 992 7187
www.sandiegoboobkinding.com

could you email me a list of equipment you have ‘

I can email an equipment list if you would like to provide your email addresses. I can tell you that I probably won’t be ready to do anything until at least July because I have orders in the pipeline that I have committed to. Thanks!

You can start with looking at a price based on sales/profit/etc however don’t short change yourself when it comes to equipment and other assets - every asset is worth something and thus if your selling it all off should be based off that.

Also if your going to formulate a price based off sales - an average would be more realistic - just because you were up 150% this year doesn’t mean every year you’ll be up 150% esp since that first year probably had quite a bit of negative revenue for equipment and other start-up costs in general.

Also you need to give everything a value - equipment and customers alike. If you have a repeat customer who brings in job after job after job even if each job is only a $100 job - they are obviously worth far more than the one client who came once 2 years ago and gave you a $300 job but never returned or the likelihood of them returning is low (wedding invitations and that sort of stuff).