How to Value a Business

Unless they have a registered business in Australia they can't own a .com.au domain as .com.au domains are reserved for Australian businesses/sole traders.

You could probably sell them the domain, transfer ownership and then make a complaint to auDA about invalid domain registration and get the domain back

 

The asking price is fifty million dollars.

Just start from there

Datto takes 10% cut hehe.

 

The guy is being a ****head for even suggesting to simply cover your costs to hand over your domain name to him.
Too bad if customers are getting confused, it's intellectual property.
However, if you were to change your domain name for any reason, there would be no need to change your business trading name.

Ask him for his best offer to play along.

 

Absolutely! There is a subtle lack of respect even in the wording of the email where he refers to my business name verses his company name. Mine IS only a trading name, however is run through a Family Trust with a corporate Trustee.

Yep! In fact, it's likely to be MY customers (or potential customers) that get confused, not the other way around. If I do a Google on my business name, his is the first that shows up, then mine.

I know that, but when people look for a business, they usually google the Business name.

 

They don't want the business, just the domain name.

 

I offered @Simon Hampel a low carb KFC meal for propertychat.com.au but it was not sufficient to seal the deal. Next time I may add a golden gaytime krusher to the offer

 

Looking at a significant business at the moment that wants 6x!
Won't get it, but won't be far off.

 

I reckon it would be worth whatever the next property would cost you. It would be nice someone buying you another property in cash that you own outright. The ball is in your court as you don't have to do it and they seem to be the one losing out at the moment.

 

I think Simon would prefer $1,000 in cold hard cash EVERY YEAR for your biz membership.

 

I wouldn't agree to their demand. You are the one with the right to own the domain.
I reckon they're trying to find an easy way to crack the Australian market. You have a reputation in the domain so your clients could mistakenly buy product from them, thinking it's you, if you agree to the transfer.
Alternatively they may be trying to trade mark their product in Australia and you're showing up as a potential obstacle to registration.
Most businesses will offer a very small amount for the transfer of rights to make them go away. Sometimes it works if the business has stopped trading or going bavkwards and a few grand is appreciated. In your case I doubt they'll pay what you suggest and they may just slip away quietly.

 

Lies. You cant eat money

 

Hehe, I sent them an email, telling them that the costs to MY Company would be significant if I was to comply to their wishes & that they could submit their best offer.

Funny, I've not had a reply.

 

Just be patient. They are probably just consulting with their accountant to see what assets they can sell off to raise the funds to buy it from you.

Or maybe not.

 

Awesome. I love looking at businesses, examining books, assessing potential etc.

In the lower price ranges a lot of business are not really a business, they are a self employment vehicle. In professional services firms this can be true in much higher brackets also. If the business relies on you being there or has a lot to do with your personal (or a key person's personal reputation) then they typically have a lower multiple then those that can have staff turnover without reduction in income.

Personal services is good example in higher bracket. As an owner it may not be all about you, but if the guy running your commercial section can pick up their team and go elsewhere (or open up on their own) then you can lose millions in fees overnight. Happens regularly in law.

 

How about replying by modifying his original message to you, but switch it around the other way to imply that you want to reimburse his costs in return for him releasing his domain name to you.
Advise him that by doing this, it will remove all confusion between the two different websites when customers search via Google, and that he can start a fresh domain name for which you will reimburse him for set up costs.
See how he takes that...
Please keep us informed of his reply.

 

Maybe reserve the domain Proskate.com.au just in case, might be easier to re-brand than a whole new name?

Just looked there is a ProSkate.com already, they might come calling for the .com.au domain later

 

So how would you value a owner operator business if after the EBIT the owners paid the net income to themselves. For example the net income was $100k and there were two owner operators and they paid themselves $50k each and they both worked in the business. The net profit of a small business is the $100k but the owner operators haven't declared a salary for heir hours worked etc.

I see his regularly with small business for sale. Not sure how to value them though apart from assets - liabilities and good will