Hi everyone, I’m looking for insights on a unique situation I’m facing. I own a C-corp in Delaware with a single-word name that can have very powerful branding in the market. I don’t want to mention the name here to not dox myself, but think of a name that’s simple, universally recognized, versatile across multiple industries, and can be either a verb or noun that signifies something almost everyone in the world does every single day. Let me put it this way - when I registered the business some years ago, I literally couldn’t believe the name was still available.
Another company, also registered in Delaware, is interested in buying my business primarily for the brand name. My business hasn’t been very active, so the primary value lies in the name itself. I already saw this company’s website, and all their branding is tied to this name they’re interested in purchasing from me. There could be secondary value in my professional background being very aligned with what this company does, but I haven’t asked whether they have any interest in me joining their operations, and that’s also less important to me.
I’m seeking advice on the following:
- Valuation: How does one value a business name that’s extremely marketable but not tied to active operations? Any standard approaches or factors to consider?
- Negotiation Tips: For those who’ve dealt with similar situations, how did you approach negotiations? Pitfalls to avoid?
- Professional Help: Recommendations for experts or resources in business name valuation and sales?
- Legal and Tax Implications: Key considerations in selling a business name under Delaware law?
Appreciate any insights or experiences you can share. Thanks!
The name is worth nothing and worth a fortune at the same time. It’s a poker game between you and the acquiring company and what they are willing to pay for it.
Not sure you will find all these answers here. For sure you need to find a consultant.
That said: the value of the name is very subjective. It depends on the additional value their business will get. Will their marketing efficiency increase dramatically thanks to this name? Or nobody cares and their clients are deciding based on relationships?
B2B businesses care less for the name since it’s all connections. B2C care more cause the marketing can do miracles.
And also what value do you loose by giving it up.
One thought: Go to godaddy.com and other sites and try to claim your domain (not logged in). See how much they value your domain. If it’s a good name, even if you have zero visitors to your website, it will have high value.
Some clarification: I own the company name, not the domain. The .ai version of the domain is going for about $130K. They (the company who contacted me) already purchased the .com domain, for which I’m assuming they paid several hundred grand.
I’m assuming they want the company name for marketing purposes and to avoid potential future lawsuits, but I’m no expert, hence why I’m seeking help.
Do you have the trademark? Do you have the domain name?
You’re going to want the trademark, they’ve probably already filed for it tho.
I don’t think your hand is as strong as you think. If they get the trademark it matters significantly less that you have the Corp. especially since you’re not active.