How to value a UK shop or small business before selling

Putting a price on a small business is one of the hardest parts of selling it. Price it too high and buyers won't even enquire. Price it too low and you leave money on the table. Here's how most UK buyers and brokers actually think about it.

Start with weekly or annual takings

For most small shops, cafés and takeaways, buyers work backwards from turnover. A common (very rough) starting point is 1–2 times the annual net profit, not turnover — the actual multiple depends heavily on the sector, how long the business has been trading, and whether the profit is provable (accounts, till records, bank statements).

Be honest about seasonal dips and one-off good weeks. Buyers will ask for at least 3–6 months of takings, and serious buyers will ask for full accounts. If your numbers are vague, expect lower offers.

Lease terms change the price a lot

A business with 10 years left on an affordable, assignable lease is worth more than an identical business with 18 months left and a landlord who hasn't confirmed renewal terms. Before you list, check:

• How many years are left on the lease
• Whether it can be assigned (transferred) to a new owner
• The current rent, and when it's next reviewed
• Any rent-free periods or incentives you received

Stock, equipment and fixtures

List what's actually included — fridges, ovens, extraction, furniture, point-of-sale systems, signage. A fully fitted-out catering unit is worth meaningfully more than an empty shell, and being specific (not just "fully equipped") builds buyer trust.

Goodwill is real, but hard to prove

Regulars, a strong social media following, a loyal delivery-app rating, or a well-known local name all count as goodwill — but buyers discount anything they can't verify. Screenshots of reviews, delivery-app stats and social media numbers go a long way in a listing description.

A simple way to sanity-check your number

Look at similar businesses listed for sale in your area and sector — size, location, lease length, and reported takings. If your price is wildly different from comparable listings without a clear reason (newer fit-out, better lease, higher proven profit), expect buyers to ask why.