Originally Posted by junkman
I never understand why people sell a block of individual business for 2-3 x annual revenue especially when there is little service work attached. You could do nothing and simply let business fall off the book and earn more than you receive by selling.
Possible reasons having more or less appeal to someone or noone:
l. Taxation is different....may be taxed as capital gains vs self-employment income with 15.63% tax off the top.
2. Gets the money now...may pay off a debt that allows freer lifestyle
3. Cashflow....gets the money now---don't have to keep the customer on the books.