Quote:
Originally Posted by hisachu  I just bought one. The price is normally 2 times net + (if buyer is willing) add equipment depreciated value.
If I were the buyer for your store, looking at your numbers and if rent is between 4000-5000, I would pay between $150K-$160K. |
Yes - standard rule of thumb for tanning salons is 1.5-2.5x net, but "standard" and "rule of thumb" are all just that - generalities. At the end of the day, it is worth what someone will pay for it of course!
If you are grossing 200k, with paid off equipment, only 8 units and Philly, I might expect your costs to be about $100K/year. Payroll 36K, Utilities 12K, Rent 25-35K, etc
Given that, as said, if I were selling, I might ask 200K.
If I were BUYING, I'd argue that your equipment is outdated, doesn't have levels, etc
Which you would then again show me the Profit & Loss statement and say "I think this speaks for itself about if this is working"
In the end though, it comes down to how much it is worth it to you not to have it anymore, and how much it is worth to someone else to take it off your hands!