How does one calucate the price of business whose space just lost its lease?

By Pam Newman • Sep 5, 2007

Opinions expressed by Entrepreneur contributors are their own.

I am a massage therapist. A friend has offered to sell me her private practice when she moves out of state in 10 weeks. Between now and then, she will need to relocate her practice space, due to a lease ending. How would one calculate a price?

There are multiple factors to be considered when evaluating the value of a business to buy or sell. Areas to be considered include profitability, assets and loans you will be acquiring, client list, established name and reputation in the community, etc. I would recommend you work closely with a business accountant.

Pam Newman

Pam Newman is a Certified Management Accountant, author and Certified QuickBooks ProAdvisor for Financial and Point-of-Sale software. She is also president of RPPC, Inc., which provides customized business development services.

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