[Jewelry making - Article 00129] - Re: [Orchid] Value of a name

[Dreamgate9]

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    John, The intangible value of the business, also known as "good
    will," is a factor based on the annual revenue of the business. I
    would suggest that a good accountant, or business broker, could
    provide more information as to what multiplier would be used to
    determine the value of this particular business. 

    If the business has been a one-man trade shop, a lot of that
    business may be lost when the "key man" leaves. A retail store that
    runs like a franchise could easily assume new ownership with few
    changes. If it is a one-man shop but the business owns a proprietary
    formula or fills a niche that no other business can fill, or has an
    extremely desirable location that goes with the business, the loss
    of the "key man" can more easily be overcome. 

    In the case of your friend's store, the new owner would have to be
    experienced in jewelry repair, or be willing to hire someone who
    was. He or she would also have to look at the potential that the
    store had for growth. They would also have to determine just how
    loyal the old customers were to the individual who did their
    repairs, as opposed to the reputation of the store. None of this is
    simple. 

    I am sorry to hear of the loss of your friend. His family may place
    an emotional value on the store as well. I sincerely hope that
    everything works out for the best, and doesn't become a feud between
    heirs and lawyers, as seems to happen far too often. 

Doug Zaruba

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