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I am purchasing a new age bookstore. And our only problem is coming up with a fair price. The business as of now takes in under 40,000 a year profit. We came to price of 100,000, 35000 inventory, 5000 fixtures and furniture. 60,000 goodwill. Is that a fair price?

Also we have to move the business. The owner is asking for 125,000. But after going thru the books and researching other businesses in the area, our price seems very very fair...

Thank You
Kimber

BIGDADDY

Its a complicated question to answer without knowing several other factors:
1-How long have they been in business?
2-Location leased/owned?
3-Competiton within a 3 mile radius?
4-Future comp?
5-Source of product ...etc..etc

but in short..your offer seems fair on face. Take the time to analyse how they really make their money. My thrift store does 30k/month. If someone
else bought my store, they'd make 1/4 of that...because of my connections,network and resources. Good luck!

kimberlynn

thanks so much for your help....I got it for the asking price and will take into consideration every you had brought up...that will be very helpful..again ty so much for taking the time to help me out...Kimber