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I am a MicroISV and I am looking to exist the business and retire. How do I value my software business?
Software businesses are typically accessed using multiples. The number of multiples assigned to the value can vary greatly, but rarely are companies sold on potential more often than not its based on revenue and profitability. You can hire agents to assess the value and they can provide a top number and a bottom number that are realistic. What you end up selling for will likely fall between those two numbers. It is best to use an agent familiar with your industry or the hi-tech industry.
While determining the value be careful to keep the sale quiet, as knowledge of the sale could potentially scare off resellers and customers who will not want the instability that typically accompanies a sale.
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