What to pay when buying a private business

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Hi

I have been offered to buy a private podiatry domicillary business but i am not sure how much to pay for it. Does anyone know what the going rate is or how you work out what the business is worth?
All i know at the moment is that its about 2.5 days work per week and the net profit for the last year was £14000 - any advice would be greatly appreciated.

Thanks

 

Hi, i'm wondering the same! - i have 2 days a week fairly laid back domicillary that i can not sustain due to my other work committments. I was offered a full time 1400 patient domicillary busines recently that was quoted as turning over 42,000 a year (profit??).
In business terms - ie, to buy a going concern people start valuing at around 3 times the value of the business to include assets and annual profit. But that model is clearly a bit unrealistic when it comes to practicing Podiatry/Chiropody: who would work for 3 years at 0% profit when buying a chiropody business based on goodwill?

I think it comes down to personal negotiations and what suits everyone. To start the ball rolling, im going to ask for 25% of the value of each client visit. As a business based on goodwill that seems reasonable. Therefore, i've a business that earns on average £800 a month, and i'm going to ask for a total of £200 per month over 1 year = £2400. That seems fair to me. How does that model sound to you?