I hear what you're saying. There's just a key point that I would like your opinion on: So, for the first 4 years, you have no income as you pay off $50,000 of

I hear what you're saying. There's just a key point that I would like your opinion on: So, for the first 4 years, you have no income as you pay off $50,000 of that $200,000 each year. The assumption though is that it's a healthy company and will continue to grow, if not hold its revenue, otherwise the annual multiplier shouldn't be 4 and you shouldn't be buying it. However, for the sake of argument, let's assume that the above is true. Yes, you're not making an obvious income, but you are earning 50,000$ worth of a company at the end of each year with 0 investment from your pocket. Isn't that a good reward for your efforts? PLUS if the company grows, you keep the surplus in profits. What I'm saying is it's subjective/relative. If you're a person who's making 30,000$ per year and you want to make 50,000$ per year, then it's worth it to buy this company at 200,000$ since you will increase your yearly earnings, even if the first 4 years you're paying off the worth of the company. It's an investment, like a house. At the end of 4 years, you own a company that's worth 200,000$ or more, if you run it well, PLUS you have a salary of 50,000. That's not bad, and I think you could find someone who'd be interested in that, no? That's why I say pick your buyers. If you try to sell to someone who wants to buy the company and then sit on their couch while the company rakes in 50,000$ per year, then no, you won't be able to sell it for 200,000$. If you have someone who's looking for a new job and sees future growth potential in your company, then yes, 200,000$ is a good price. Does that make sense?