Retail business valuation is the method of deriving a fair market value for your business. Whether you are interested in buying or selling a business, assessing its correct value should be your first priority. Many factors go into valuating your retail business, such as your sales per square foot, your inventory turnover rate and how many similar stores have opened in your area in the last year. As there are multiple factors going into assessing your business’ worth, there are also a few different ways in which you can get your information. You can use an outside valuator to assess the fair price of a business or do it yourself. There are plenty of valuation resources offered.

Getting a business assessment is a very useful tool to help you make sound business choices. Follow these steps to find your retail business’ worth:

1. Consider a local business appraiser and profit from in-person meetings.

2. Invest in software to gauge your retail business’ worth in your own time.

3. Use helpful resources to value your retail business’ unique sub-division.

Action Steps
The best contacts and resources to help you get it done

Work with a local specialist with experience in the industry to purchase a retail appraisal

When looking to value a retail business, a local professional will have a better idea of regional economics, allowing you to time the sale of your business better, for example. They will also be able to meet with you and explain the different reports and formulas that go into the valuation.

I recommend: Business Valuation Services is located in Portland, Oregon and they have many years of experience in retail business valuation. BCC ADVISERS will get your retail business valuation done right the first time. They have offices in Iowa and Nebraska.

Take advantage of specialized software solutions that incorporate your sub-division's specialization

Being able to value your business can help you obtain financing if you ever want to expand your sales floor or inventory. It will also assist you with setting a selling price if you want to exit the business. Learn how to value a business by using helpful retail business valuation software. The factors and formulas created especially for valuating a retail business are included, ensuring that you will get an accurate report.

I recommend: NVST has a software solution called eValPro that has built-in SIC code look-up to get the most specific retail industry information available. ValuSource offers a software package that includes market data and industry composition valuation methods to ensure your report is tailored to your retail business.

Utilize invaluable business reports to appraise a retail business' unique sector

One way to gauge your retail business' worth is by consulting industry-specific financial reports and analyses. A general economic report will show how the overall economy is faring. A retail industry-specific report will go into much greater detail regarding the performance of the retail sub-division you are in. This gives you all of the information you will need when valuating your retail business.

I recommend: First Research offers comprehensive industry specific reports of all SIC sub-divisions of retail businesses, such as department stores. IBISWorld is a good resource to find industry-specific financial information such as the industry conditions for large retail stores in your area.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Many accountants have experience in retail business valuation. If you currently have an accountant, consider utilizing their services.