I Am Selling My Small But Profitable Home Luxury Brand. How Much Valuation Multiple Should I Expect?
Mу business hаѕ evolved frοm few items sold аt home five years ago, tο a brand wіth 5 lines οf products (home deco, fashion accessories, bags, etc) sold іn mу two shops (leased) аnԁ аbουt 15 point οf sales. Mу business іѕ profitable bυt іt іѕ totally depending οn mе working here, ѕіnсе I сrеаtе thе product аnԁ organize thе manufacturing. Hοw much саn I expect tο sell іt tο a company thаt hаѕ already οthеr brands аnԁ shops?
what will the market bear?
too expensive and lost sales are hard
to make up in a bad month .
too cheap and you can’t put
quality materials and workmanship
into the products and still pay the bills.
anyone you sell to will want to
make 50 to 100 percent of cost or
even more (greedy bastards) to cover shipping.
and then it still needs to be affordable
to return a good quantity of sales.
running a shop can be very draining,
if you could just set up a web portal, between
your presentation skills (a 1 time thing)
on-line sales would be a good way to
keep overhead down and maximize time for
design and production of products.
this would also allow you to
keep the prices reasonable while
retaining a higher percentage of profit
to keep the cycle going.
keeping a comfortable profit margin will
give you the leverage to get a loan
if you ever want to grow and help keep
the quality of design and product in vogue.
the demand for that quality will make
the product, the design, and the company
a commodity.
Your convoluted question cannot be answered. First, it is hard to determine if you are talking about selling your products to a company or selling your business. Second, you provide no data, so there is no way to evaluate the situation. Restate your question clearly and provide some good numbers, and you may get some answers.