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I was talking with a friend today, about how to value a gun shop.
In the construction,and I suppose a few other industries,the company can be valued with the contracts and some accounts that the business has.
And all the business licenses
Inventory and property also.
An established construction business can be worth more than just it's assets.
How about a gun shop?
Does it have accounts it can transfer? Or are most dealings done "as you go". Cash on the barrel head. Seems most distributors want to get paid immediately for the guns,of course.
I'm sure some accessory distributors deal with some credit.
The buyer would have to qualify for the FFL,himself and the business license may be worth a little if it includes some "grandfather" clauses for the local municipality.
So a guy I know was thinking of selling.Asked me if I wanted to buy his store.
He does not own the property
He had/has about ,say $20k? in inventory.Maybe 15k?
How would he justify the shop being worth $100k?
It seems to me,with a business like this,the shop name would carry a little,the inventory would be the bulk,if no property was involved,and the licenses wouldn't be worth very much at all.Gotta get your own anyway.
Am I missing something?
Please enlighten me,so I can go buy a store.
Maybe.
Mike
In the construction,and I suppose a few other industries,the company can be valued with the contracts and some accounts that the business has.
And all the business licenses
Inventory and property also.
An established construction business can be worth more than just it's assets.
How about a gun shop?
Does it have accounts it can transfer? Or are most dealings done "as you go". Cash on the barrel head. Seems most distributors want to get paid immediately for the guns,of course.
I'm sure some accessory distributors deal with some credit.
The buyer would have to qualify for the FFL,himself and the business license may be worth a little if it includes some "grandfather" clauses for the local municipality.
So a guy I know was thinking of selling.Asked me if I wanted to buy his store.
He does not own the property
He had/has about ,say $20k? in inventory.Maybe 15k?
How would he justify the shop being worth $100k?
It seems to me,with a business like this,the shop name would carry a little,the inventory would be the bulk,if no property was involved,and the licenses wouldn't be worth very much at all.Gotta get your own anyway.
Am I missing something?
Please enlighten me,so I can go buy a store.
Maybe.
Mike