Selling a shop

[Paniliakos]

Hi.

I was wondering what's the basis for calculating a shop/business price to sell.

I mean, if the annual revenue is, for example, 10,000 pounds, and I would like to sell my business, should I ask the 10-fold of the annual revenue?

any ideas?

 

[mumper]

Ask Jayne -I think she has or is selling her bakery, she would know.

 

[JustOneUK]

premises + 3 times turnover

 

[Jayne]

Hi,

I didn't value my bakery, an estate agent did mine. A good accountant could give you a rough valuation though. I always pay for stuff like that doing, leave it to the experts I say

Jayne

 

[Steve Roberts]

Obviously it's worth what anyone will pay for it. However, as a guide for small retailers, you're talking (circa) net asset value plus three times net profit.

 

[JustOneUK]

premises + 3 times turnover

oops thanks for picking up on that Steve, PROFIT not turnover

 

[bwglaw]

Hi.

I was wondering what's the basis for calculating a shop/business price to sell.

I mean, if the annual revenue is, for example, 10,000 pounds, and I would like to sell my business, should I ask the 10-fold of the annual revenue?

any ideas?

To assess market value it is best to look around the area and see what they were/are selling for.

I also suggest trying out Dalton's Business - many retail businesses for sale. Their website is http://www.daltonsbusiness.com

It is also worth checking out the trade publications of the market you are in.

Your price should take into account number of years on lease, or freehold value, stock (although many businesses are sold at price + stock at value SAV), goodwill, profitability etc.

There are also agents that specialise in marketing businesses for sale, again this depends on the market you are in

 

[JoyDivision]

premises + 3 times turnover

That means an average sweet market stall could be worth about £150,000.

Surely the 3 x turnover rule depends on the average markup?

 

[Paniliakos]

Is there anything different in mind if we were to talk about an online business?

 

[winton50]

If you get agents to value your business then get at least three different ones to look it over.

We did this and found massive variations in value mainly because the higher agent just wanted to get our business and wasn't bothered about actually selling. (they wanted an upfront fee)