[nostrademons]

I think the contrast between our replies is illustrative of why there's so little liquidity in small businesses.

Mine was basically "In strictly financial terms, you're nuts to sell for $85-100K." Yours was "As a buyer, you're nuts to buy for more than "$85-100K." What's going on economically is that transaction costs will eat up most of any surplus for a business worth < $1M, and so both statements are true.

In practice, the small business owners I know usually just milk their business into the ground. They treat it like an annuity that generates $X of additional income, and if it ceases to become profitable or worth the trouble, they just shut it down.

[gamechangr]

Agreed.

> the small business owners I know usually just milk their business into the ground.

You're right... I see it all the time. It's hard to someone to even want to buy enough to make an offer. If they do... I always try to flip the role.

"how much would you offer for a business that supposedly made $95,000 - in an industry that you maybe unfamiliar with?"

That's what a buyer would pay.