how to value selling price of our seo company?

[byrddog]

My partner and I are dissolving our SEO Company.... one is going to buyout the other.

Can anyone please provide some good resources or thoughts on how to value our company? I've been looking all over Google for tips on valuation, and can't find any... please advise.

thanks
Brad

[AussieWebmaster]

Most businesses are valued on monthly profits - usually 1-2 year of profits.... but that would be minus the partners pay as well as every other expense.

I would say 12 times monthly profits would be about right

[beu]

I'd ask for as much as you think you can get + 40%

[cajun67]

You have to be able to project future cash flows for each year, and then discount them all back to the present. That's easy to do if a) you have lock-in with your customers and consistent revenue, and b) you can conservatively predict year-over-year growth.

If there's a university local to you, contact their business school and see if someone in their finance department would want to tackle that for you on the side.