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Business Valuation

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  • Business Valuation

    I bought out my first location almost 3 years ago. At that time I was looking at ANY business for sale, not limited to just grooming. Why is it that grooming businesses sell for far less than most other comparable businesses?

    Someone told me once that they should sell for the same amount the store grosses.

    It seems to me the value is in the client list...but you can't sell clients.
    So where does the valuation come from...JUST the gross? Gross + equipment?

    Input please...

    Stephen Note: I assist the selling of dozens or 100 or more shops a year, and only TOP businesses, with complete tax records and filings on display as proof etc, and plenty of goodwill valuation sell for one times gross. Today most are selling at 1 or 1.5 times net because groomers do not keep adequate records, provide 3 year tax statements, and many more reasons.

  • #2
    definitely value in the client list ... but are all of these clients truly "regular" clients? are they coming 1x a year or 12x's a year? or are they even still clients or do we only hold their info? i would not pay for those "clients".