Selling a phone number?

[Billhowe1]

So I've been considering getting out of the game, mainly because I have other business ventures and I'm looking to slow down and cut out the most stressful venture, I've had a couple of friends in ask to buy my phone, problem is niether of us even know where to begin price wise, anyone ever do something like that before?

 

[lumberjack]

Normally you’d buy the number with the brand/book of business.

 

[flushcut]

I've always heard you want to try and sell a business for three times your yearly gross. I would presume machinery and equipment could be a variable.

 

[Billhowe1]

I've always heard you want to try and sell a business for three times your yearly gross. I would presume machinery and equipment could be a variable.

They are just interested in the number and name.

 

[Billhowe1]

Normally you’d buy the number with the brand/book of business.

That's kinda what they're after, but how would you go about determining value? Obviously I'd like it to be fair for both parties, I just have no idea how that's determined

 

[Mick!]

I tried to sell a phone number/business in this way when I left the UK.

Ended up giving it to my ex-employee.

Good will isn’t worth much without contracts etc.

Ymmv of course.

 

[lxskllr]

Maybe a percentage of the previous year's contracts for one year. It would be like a referral fee. I don't think 10% would be out of line for the purchaser. Dunno if that sounds good to you. Take the average of the previous five years, so the ups and downs are incorporated, multiply by .10.

 

[lumberjack]

That's kinda what they're after, but how would you go about determining value? Obviously I'd like it to be fair for both parties, I just have no idea how that's determined

How much profit does the brand generate annually? A multiple of that is a starting place.

If you have enforceable contracts (book of business) with meaningful time remaining, you can include some value for them in the brand's worth.

 

[Billhowe1]

SHow much profit does the brand generate annually? Aar multiple of that is a starting place.

If you have enforceable contracts (book of business) with meaningful time remaining, you can include some value for them in the brand's worth.

I'd honestly be better off asking my CPA, most of my business is residential repeat clients and their referrals, but no advertising, probably around 300k or so a year, roughly 25-30% profit after expenses, no recurring commercial contracts, commercial work out here really sucks and there's no loyalty, all about the cheapest quote will no regard for quality