Originally Posted by morph
I know it usually depends on several factors, but I have seen different formulas tossed around.
So For Example: Let's say you have a client base for shared and reseller hosting. The average monthly revenue per client is about $20 with total annual revenue at about $15,000. Most clients are long term clients, 2 years or more.
In your opinion on average what would this business be worth?
1X as a general rule of thumb however other factors include assets, longitivity of the business, scalability i.e. potential. Many diamonds in the rough and the turn around? Absolutely fabulous! However 15K regardless if a month or year, if total expenditure is 16K a month or year, is a sinking ship and the hole needs to be patched.