Free Small Business Valustion Services
Get a Free Businness Valuation Consultation now! Free Business Valuation Calculator
Popular Biz Valuation Formulas:
All Categories

Site Directory



  Bookmark and Share

Consignment Shop/Store Business Valuation Formula:

This is a general business valuation formula or pricing method for existing and established (min 3 years) retail consignment businesses based on a multiple of the owners annual adjusted net income and or a percentage of annual gross sales.

Consignment Store Valuation Formula: Approximately 1.75 to 2 times the owners annual adjusted net income including inventory that is store owned. Or approximately 35 to 40% of annual gross sales including any store owned inventory.

Broker Comments: The biggest issue I have run into with consignment type businesses is sorting out the inventory as some operate as a hybrid. On the plus side many consignment shops have very health profit margins for a retail business. They also appear to do very well in challenging economic times and can be considered relatively recession resistant. 

Request A free business valuation consultation about your existing consignment business here.
Note: Always contact and consult with a Business Broker, Business Appraiser, or financial adviser who is familiar with the dynamics of your local market and economy.