Submission + - Selling a software company
TogetherGirl writes: I'm a partner in a small software company that sells 7 software products worldwide. We have been in business for about 5 years and each year sales have increased nicely.
Because of different philosophies / interests / opinions, we have decided to part ways. We have all agreed that it is best to sell the company or all products to a third party and hence, distribute the proceeds according to share ownership.
Since there is interest in our products by our competitors, we are trying to determine what is the best multiple of gross product sales to be used in calculating the 'selling price' of the company or all of the products.
I know there is no exact science but what is the average multiple (of gross sales) used to determine the asking / selling price of a software company?
Can anyone point out some good examples of companies being bought for around $1 million USD?
Thanks
Because of different philosophies / interests / opinions, we have decided to part ways. We have all agreed that it is best to sell the company or all products to a third party and hence, distribute the proceeds according to share ownership.
Since there is interest in our products by our competitors, we are trying to determine what is the best multiple of gross product sales to be used in calculating the 'selling price' of the company or all of the products.
I know there is no exact science but what is the average multiple (of gross sales) used to determine the asking / selling price of a software company?
Can anyone point out some good examples of companies being bought for around $1 million USD?
Thanks