Under value lease: Many times the rents in the area have increased with inflation and due to an increasingly population, therefore it is important to compare rent and terms of the lease against comparable properties in the area. Then perform a net present value calculation for difference between current leases that are being offered and the lease to the premises being sold to derive a dollar amount of this asset.
Renovation Value (including the cost and owners time for architectural drawings, building permits, renovations, builders risk insurance rent during the renovation period)
Value of current customer base (Even if the business is losing money)
Mailing List/ email list value
Exterior sign value
Employees Trained and in place value
Liquor license/ lotto – It is quicker to buy a licensed business and transfer the licenses than to apply for a new business.
Net present value of the companies earnings less an the owners salary (which mat vary from one buyer to another)