I'm about to list my massage therapy clinic for sale and I'm looking for ideas on how much I should start at? The annual net is $45k. Clinic has 3 rooms and no other expansion is possible. It includes 3 massage tables, computer, printer/fax, chairs, tables, 3 cabinets, front reception desk, washer & dryer, mini fridge, microwave vacumn and Hydrocollator. Clinic name has been around 12+ years and in current location for 3 years.

I would start at $150K. Basically 3x your net.

Hello j:

You need to consider that YOU are the asset that brings in the cash.. All the tables, rooms and computers ain't worth 2 cents if the guy you sell it to isn't you. If, of course, your business is mostly walk in, then who you sell to is less important.. But, I'll bet most of your business is because of YOU.

Why HE'S important to you, is that you're probably going to have to carry some paper in the sale. If he fails, you don't get paid, and you'll have to take back a wrecked business.

excon

Others are saying that there isn't much for expansion for net and there's not enough assets. Also I 've heard from people that it's a different ratio for service type business. Is that true?

Hello again, j:

Pretty much true.. ScottGem multiplied your bottom line by 3. That's about right for a service related business.. In my view, it would be discounted for the reasons I gave. If you were a manufacturer, the price for your business would be more like 10 times the bottom line.

excon