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Retail Boutique Store Business Valuation Formula:

This is a very general business valuation formula or pricing method for existing and established (min 3 years) retail boutique clothing and accessories store businesses based on a multiple of the owners annual adjusted net income or cash flow and or a percentage of annual gross sales.

Boutique Store Valuation Formula: Approximately 1.50 to 2 times the owners annual adjusted net income including inventory. Or approximately 40% of annual gross sales including inventory.

Broker Comments: Small retail businesses like clothing and accessories boutiques are often challenging to sell in a world dominated by big box retailers with very deep pockets that can generally offer much more competitive pricing. This especially true for boutique businesses that have not been established for at least 3 to 5 years, (I have found that many don't survive more than 2 years) or offer unique or exclusive product lines that will generate loyal and repeat customers.

Note: Always contact and consult with a Business Broker, Business Appraiser, or financial adviser who is familiar with the dynamics of your local market and economy. Request  a free valuation about your existing retail boutique store business here.