Revenue $150k, how about profit margin?
I've heard figures as high as 10x the profit is acceptable.
3x to 5x revenue ain't bad either.
I wouldn't buy that business for a hundred bucks if revenue was $150k but made $5000 a year profit for example.
The broker, I assume, will take a cut? Will the new owner make payments? Profit share? Lump sum?
Maybe if you sold for 200k and maintain 5% of the profits or something. Ongoing residual income is always nice!
The point is you can sell it for lower if it's in your best interest to get a better payout, maintain percent ownership etc. But if the buyer wants to make payments for 20 years, you should charge much more because that's annoying.
For a lump sum payment, 2x or 3x the revenue is good, or 10x the profit, however you want to slice it, depending on the margins. If you're 90% profit then the 10x probably won't work, but any business with 90% profit is worth a lot. If I buy your business for $200k but I'm automatically making something like $130k a year in profit, the obviously I've got less than two years to pay off the investment, I mean that ain't bad! So charge more! But if the profit is like $20k a year, it would take me forever to pay back a $300k purchase of the business, not worth it to me at all.