No black box. Here's exactly how we price a store.
Valuation = annual owner earnings (SDE) × a multiple. SDE is profit before you pay yourself. Each factor below nudges the multiple up or down from the base, within a floor and a ceiling. Unprofitable stores are priced on a revenue multiple instead.
Niche adjustments
Factors and bands
Size of earnings
Larger, more established earnings attract more buyers (including aggregators and private equity), who pay higher multiples.
Business age
A longer track record proves the business is durable, not a short-lived trend.
Revenue growth
Buyers pay for momentum. Year-over-year growth raises the multiple; decline lowers it sharply.
Repeat customers
Revenue from returning customers is cheaper to keep and more predictable for a new owner.
Profit margin
Healthy margins leave room for a buyer to reinvest and absorb shocks.
Product concentration
Depending on one hero product is a risk; a broader catalogue is safer.
Seasonality
Steady monthly revenue is easier to finance and manage than a single peak season.
Refund rate
High refunds signal product or fulfilment problems a buyer will inherit.
Owner involvement
A store that runs without its owner is worth more because the buyer is not buying a job.
Paid-ad dependence
Revenue that depends on heavy ad spend can disappear when ad costs rise.
Valuation service: checking