This section of the forum is for discussing the business and finance issues of the t-shirt industry. Which business structure to use (sole proprietor, LLC, S Corp, etc), how to handle billing, where to register your business and get the proper licensing, etc.
After the holidays we're thinking about selling our company. Does anyone have any advice on how we would go about doing this? and how do you determine what a companies value is (including all inventory, press, transfers, shirts, domain etc
Well. I will mention a few things. Your company is worth what someone will pay for it..period! Build value in it for the potential buyer margins, client lists, low overhead, etc. I would simple add all hard costs such as your inventory and equipment. Then sell it for what will make you sleep well at night... good luck!
It depends on your annual sales. If your sales are good then you can sell the business. Any buyer who knows anything about business will want to see the numbers. The assets have little to do with the value of the business unless the buyer is looking to break it up and liquidate. A businesses value is based on it's ability to make money and if it's not making money, it has very little value as a business.
If your sales are not good, you might be better off dissolving the company and selling the equipment. If the business isn't making money, the client list, inventory, domain, etc. won't add much value. On the other hand, the assets would have some value to an existing business. You need to look at your sales figures and figure out which way to go.
A Business Valuation is based on a company's: Future Market Value. Google that term to get some much needed information. The vast majority of private business owners leave money on the table when they sell their company. This is the time when a properly written business plan with pro formas that you can validate can make you a lot of money. Good Luck!
what kind of company do you operate? are you a contract printer, a fashion label, a web based clothing line, what do you do? This will play a role in the value of your company, and even determine whether or not is can or should be sold as a company.
If you are a contract printer, selling is definitely an option. The business location, equipment, current client base, and reputation are all transferable... all that changes is the owner. This type of business under good market conditions usually sells for about 5 times it's annual profit.
we're a web based clothing line for infants and toddlers.
do I have to factor in the host cost, shopping cart, merchant account fees or just cogs sold?
Humm...Yeah!
Everything is factored in according to what is reflected in your year ends - financial statements, including your assets etc.
Be assured that any buyer will want to see them. Your financial statements.
I think once you have all your financial statements and realistic future growth projections in place, it is a good idea to get a brooker because they will hunt down a buyer that is looking to buy what you ware selling.
As mentioned already, it is what they want to pay that counts. So by hirering a brooker to find you that buyer that is looking to buy what you are selling is well worth the few points the brooker will take off the top.
How fast you need to sell is also important.
good luck and hope you find a buyer and get a good $$$.
If your books are solid and your sales are healthy, you should be able to get the 3 to 5 times as mentioned. But like Ross said, your business is worth as much as someone is willing to pay for it. If the focus is on a high demand segment, then you should be able to get 5 times plus.
How to determine my sites value 
