I'm in need of some advice about the purchase price of a business. I know this is more art than science but I thought I would get some good non-biased opinions here. Ok, so here it is: - It's an existing legal services company (specializing in locating debtors and serving court summonses). - The company has been in business for 34 years (small operation, 2 employees, 6 contractors) - The business generates US$200,000 - 250,000 of revenue per year. With profits of about 95K-110K - The business comes with virtually no assets: a few desks, outdated computers and telephones. - The current owner would agree to sign a non-compete, surrender his license and stay on for free for the first 180 days. He is asking $120,000 for the business. I consider this to be awfully high. I would be purchasing, in essence, goodwill and a client base but no real assets. If I didn't run the business I would have to hire a licensed individual which would cost $55-65K a year. I want to make an offer of $75,000 for the business. What would you pay?