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How do put a market value on my small business I wish to sale?

I have a small convenient store and cafe' that I have decided to sale. I have owned it for 13 years and am well established and successful. How do I value my established business? The property and building are easy.

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Answers (2)
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Gateway Franchising
Saint Louis County, MO

Dorothy,

Valuation is really nothing more than what people are willing to pay for your business! I know that's not a terribly helpful answer, but to attach a value to a convenience store, I would recommend using a simple and common measure (e.g. earnings x 2.5). If property is included in the sale, add that to the price [(earnings x 2.5) + property value].

A great way to start is to look for comparable businesses in your area and see what they are selling for. It's not terribly different than selling a home in that respect.

Mar 21, 2012
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The BAF Group LLC
MD

The pricing for most small business are based on what is commonly referred to as "Cash Flow". Take a look at our blog at http://combrokerbusiness.wordpress.com/2012/02/07/cash-flow-what-the-heck-is-it/

To actually do the pricing, talk to your Accountant, a Business Broker or a Valuation expert.

Mar 21, 2012

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