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Braden Todd
09-03-2013, 8:10 PM
Not sure if this is the correct area for this type of a question, sorry in advance if it needs moved.

I was wondering if anyone here has had any experience buying or selling a laser business. Curious if there are any "standards" that may be applied for valuation, or if a laser business even has a high value/demand for buying /selling.

Thanks for any and all replies!

Larry Alles
09-03-2013, 9:14 PM
I sold my company after 32 years in the business. I had a very good buyer who had some engraving background. I am still a consultant for another 8 months.
Even go in and do some engraving for him. Had 2 lasers, 3 computerized engravers, and 3 Deckel pantographs. His business is going strong. I told him to do a good job,
give the customer good service (time wise), and at a decent price. That was my motto. Work of mouth was my biggest advertiser.

Rodne Gold
09-04-2013, 2:40 AM
You can apply the same valuation as any other business..return on investment is about all that counts.

Dan Hintz
09-04-2013, 6:21 AM
You can apply the same valuation as any other business..return on investment is about all that counts.

Yep... no reason why lasers being involved should change the basic formula.

Tim Drinkwater
09-04-2013, 8:12 AM
I don't have much experience on the laser side of things but will offer my perspective as a owner of a machine shop.

Machine shop valuation comes up a lot on another forum I frequent. The basic consensus is that for a shop is doing small lot contract work (usually business to business) the company is only worth the value of the equipment and/or building. It's just too easy for customers to find another source in the machining business. Many times for a small shop it's the personal contact with the owner (who is leaving) and buyer that is bringing in the business.

Again, as a machine shop, if you have your own product line that changes things. A product line does have it's own value which needs to be taken into consideration. The product line could even be sold independently from the rest of the business.

While every type of business is different I would equate this in the laser engraving world to a shop that is doing volume B2B (think promotional stuff) work and one that is doing small volume retail type business. In the retail world a brand name (company name in this case) can have a lot of value.

Just some thoughts from a greasy machinist.

Rodne Gold
09-04-2013, 8:27 AM
Yeh, goodwill is difficult to value.
The real question to ask is why is the business for sale..