Succession planning – Selling your shop after 10 years: steps to value the business and determine a fair price
If you are considering selling your shop or transferring your business as part of a Unternehmensnachfolge (business succession), a proper Unternehmensbewertung (business valuation) is the key step to ensure a fair and successful deal for both buyer and seller.
To determine a fair selling price
For financing purposes (e.g. if the buyer applies for a Kredit)
To estimate potential tax implications (e.g. income tax – Einkommensteuer – on the profit)
To present a reliable figure in negotiations or to family/heirs
(for example in retail – Einzelhandel – or gastronomy – Gastronomie)
This is one of the most common methods for valuing small businesses:
Wert (value) = average annual profit (Jahresgewinn) × multiplier (Multiplikator)
| Item | Explanation |
|---|---|
| Jahresgewinn | Your average annual profit after taxes and fixed costs |
| Multiplikator | Typically between 2 and 5, depending on sector and location |
Example:
If the annual Gewinn = €50,000 and the multiplier is 3 →
Market value = €150,000
Relevant if the shop has significant equipment, fittings and stock:
| Asset | Valuation |
|---|---|
| Shop fittings / equipment | Current market value |
| Inventory | Realisable sale value |
| Company vehicle | According to Schwacke or DAT guides |
| Brand name / trade name | If there is proven reputation: estimated premium |
All these values are added up, and then any remaining debts are deducted →
Result: Substanzwert (asset value).
| Factor | Effect on price |
|---|---|
| Location (Zentrum / Bahnhof / Wohngebiet) | Can increase or decrease value significantly |
| Number of regular customers | Increases value (Stammkundschaft – loyal clientele) |
| Google or social media reviews | Indicator of reputation and customer satisfaction |
| Time on the market (10 Jahre +) | Increases trust → allows for a higher multiplier |
| Document | Purpose |
|---|---|
| Jahresabschlüsse (annual accounts) for the last 3 years | Show profits and growth over time |
| Mietvertrag (lease agreement) | Disclose rental obligations |
| Kundendaten (anonymous customer data) | Prove the size and structure of your customer base |
| List of assets and equipment | Basis for calculating the Substanzwert (asset value) |
| Mitarbeiterliste (list of staff) | If there is a permanent team |
| Form | Advantages |
|---|---|
| Verkauf (full sale) | One-off payment, immediate exit |
| Ratenzahlung / Mietkauf (instalment sale / hire purchase) | Attracts buyers with limited capital |
| Übergabe an Familienmitglied (transfer to a family member) | Often tax-favoured or even tax-free if planned well |
| Beteiligung step by step | Partner gradually acquires shares over time |
Yes. To obtain a precise and defensible valuation, you can:
Consult a Steuerberater (tax adviser), or
Contact your local IHK (Chamber of Industry and Commerce), which often offers free workshops on business valuation and succession, or
Use online tools such as the “Unternehmenswertrechner” on unternehmensnachfolge.de
Editorial note
The authors and editorial team of this website aim to provide accurate information based on thorough research and several sources. However, errors may occur or certain details may be incomplete or not fully clarified from a legal or tax perspective. Therefore, please treat the information in this article as an initial reference only and always consult the competent authorities, tax advisers and other professionals for binding and up-to-date advice.
