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Small Internet Business Valuation Formula:

This is a very general and fast business valuation formula or method for small and established (min 3 years) Internet based businesses based on a multiple of the owners annual adjusted net income

Internet Businesses: Approximately 2 to 3.0 times the owners annual adjusted net income.

Broker Comments: There are many factors and variables that determine the valuing of a Internet or web based business and I would highly recommend requesting a business valuation consultation from an experience and professional appraiser. However my experience with Internet based businesses in the Arizona market is they generally attract a lot of buyer interest and are able to support higher multiples than a lot of traditional brick and mortar businesses for a number of reasons. I believe some of this popularity stems from the fact that most small Internet businesses can be home based (providing an enviable lifestyle and more free time), have very low over head expenses, are fairly easy to operate, and generally have no employees.