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You need to get more historical data. The most prevalent standard for purchasing a business is a discounted cash flow. You need to see historical figures to get an idea of what the trends are for the business, whether it is growing, declining or flat. Since this business does not seem equipment intensive, you might consider working off a multiple of the net income and I would use after tax income. You could pay three to four times net income. That would put the value at between $75-100K if the net income was $25K. This assumes the income is steady over the last few years. It is critical to look at those trends.
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