So imagine that I have a very good friend and that very good friend, owns nail bar, in High Street or, you know, in a town or, or a city and comes to me and he or she says I, yeah, I'm looking to move towns.

but I don't, want to shut down my business.

I wanna sell my business as a going concern.

how much, you know, you are a finance professional, how much do you think it's worth? you know, and how would you go about advising her? And I guess more importantly, what questions would you want to ask her? So think about different valuation methodologies, but think about how, you'd, what questions you'd ask her, specifically what ones would be more relevant to a, you know, a relatively small, high street at nail bar? Hmm. Well, I think with most small businesses, sometimes accounting is not as, you know, rigid as it is with other sort of, like, big companies. so I probably ask them about what sort of accounting software they're using.

I think that, you know, in the United States at least, QuickBooks is a very common method.

And then, so I kind of look at how much revenue the business is generating and how much actually falls down to the bottom line, and using those profits as a sort of means to, project out what I think the financials might look like.

And then from that, obviously you can arrive at a discounted cashflow analysis.

So I think that's like a pretty traditional way of, going at it. and I think there's definitely a lot of factors.

You said that this business is located on, did you say High Street Or, yeah, on High Street. So on a main street in, you know, in a reasonable sized town or city, you know, somewhere in the city centre.

Yeah. Reasonable sized town.

It's on a good, it is in good place.

You know, I might look at the real estate value, right? Because the location itself is an asset. That's something I'd want to factor into my valuation.

I might look at comparable companies in the area, go to other businesses.

I doubt they'd allow me to look at what their financials are like. But maybe just speaking with owners, speaking with customers, getting engaged, of what the financial situation might be like, or how, you know, this person's business, that I'm working with might have an edge or a disadvantage over others, right? So seeing where it fits in the industry.

so I think it, it's a good combination of things, right? You're looking at the qualitative, where is the business located? How much is the real estate cost? How's it doing in comparison to other businesses? And then you have the quantitative side. How much money is this BRI business bringing in? How much does it take to run? How much profit, is it generating? And just using all of these factors that I have at my disposal too, we'll come up with, you know, an estimate.