The business is a set of elements to attract customers, it is made up of intangible and tangible elements.
The intangible elements are in particular: the brand, the trade name, the customer portfolio, the staff, the patents, the brands, the software and the right to lease.
The physical elements are the material and the goods.
How to value a commercial property ?
The goodwill is generally valued on the turnover, its percentage varies between 40 and 120%, which is very wide, we observe more generally between 60 and 80%.
This calculation is very often used for catering business.
Goodwill can also be valued by the value of the assets, which the company owns, see above tangible and intangible elements.
Finally, the fund can be valued by a multiple of the benefits, generally between 3 and 5 times.
To have a more precise idea of the value earned by the company each year, it is necessary to restate the depreciation, since it is a tax deduction allowed to the company despite everything the money is well in the coffers.
We advise to have a global approach by valuing your business according to the three methods, in order to ensure its consistency with regard to the assets and the margins obtained.
We will see why below.
How to finance a commercial property ?
The business can be financed from several sources:
The personal contribution, this must be at least 30%, and in particular for the financing of the stock
A professional credit with a banking establishment, this one will study the valuation of the fund, it will lend you over a relatively short duration (7 years maximum), reason for which the margins released must allow to repay the loan and leave money available to secure your future investments.
Loan from loved ones, says Love Money
Or even the leasing for the hardware part directly with your suppliers