Business sales, Business Appraisals, Marketing & selling of businesses, Negotiation & Mergers, Melbourne, Australia
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Building and Home Improvement Supplies Back to our services

Building and Home Improvement Businesses 

These are typically major retail outlets that include:-

  • Nursery and Garden supplies
  • Timber wholesale/retail
  • Hardware wholesale/retail
  • Specialist outlets ie Kitchens, Bathroom, Floor coverings, Lighting
  • Equipment hire ie Builders & Handyman Equipment, Temporary Fencing, Rubbish Skips etc

Typical buyers are:-

  • Individuals with related retail background
  • Individuals with experience in the building industry often from a trade background
  • Competitors seeking to expand their operations


What is a typical building supply/home improvement business worth?

Note:  The information provided is general in nature and is presented as a guide only every business has its own unique qualities.  It does not take into account the specific characteristics of a particular business and the market conditions that exist at the time of transaction.

Characteristics that determine value:

  • The nature of the geographic area that the business services. 
  • Breakup of revenue between retail customers and trade (builders, trades people)
  • Turnover can be seasonal and cyclical in nature
  • Security of occupancy ie Freehold or a long term lease.
  • Working capital required, stock level etc
  • Experience and reliability of existing employees
  • Extent of plant and equipment, vehicles etc required to operate the business.

These businesses are typically valued on the basis of income available to the “working owner”, where a working owner’s income (wage) is included as part of the profit of the business.  However the profit of larger businesses is generally calculated on the basis that the business is under management and ruling market rates for all salaries have been factored into the expenses before determining the profit.  In this instance they are valued on an ROI basis (Return on Investment) of the profit generated.

It's important to remember that the figure (value) resulting from either of the foregoing methodologies includes all the components of the business ie Stock, Plant & Equipment, Vehicles etc, and Goodwill.

 
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