If you’ve decided to sell your supermarket, then it’s important to collect as much data as possible before putting it on the market. If you want to know exactly what your operation is worth, a comparative market analysis (CMA) is the ideal tool. It will give you an indication of comparable business sales and other related information to help you formulate a strategy for selling.
As an in-depth report, CMAs are extremely helpful because industries tend to set their own rules when it comes to valuing a business. This way, you can gain a true understanding of where your supermarket business sits in the current market before you sell it.
So how do you get information for your CMA?
Internet, newspapers, real estate agent publications
Just as when selling a residential property you have to strike a balance between setting a valuation that will give you the returns you want and pricing your supermarket competitively enough to garner interest. Get started with your CMA by researching information about comparable properties within a reasonable range either online, in newspapers, or through real estate agent newsletters and brochures.
Don’t be overwhelmed with the information you get. The more information you have to work with, the better the CMA report for your sale. The end result will be detailed information about your business and all comparatives to determine its value.
Business listings, past and present
Check every listing that is similar to yours – active listings are those currently on the market, pending sales have sold but are not yet closed, and expired listings did not sell during their listing period so have been withdrawn from the market. Talking to the real estate agents about why the supermarkets were withdrawn will give you a good indicator of how you should move forward with your own sale.
Research comparative businesses that have sold and closed within the last 12 months in the same area. They will be your best guide in determining what your business could potentially sell for, but you’ll need to factor a few things in when looking at them – what condition the property was in, how much floor space there was, building size, exterior appearance, and if there were special amenities or features included.
Those in great condition, location and of a standard floor size generally attract a higher price.
There should be nothing stopping you from visiting those comparative supermarket businesses currently on the market and taking a close look at what they’re offering buyers. Just like walking into a home open, you can see the quality of the property for yourself and see how and why the asking price has been determined.
If you set the wrong price for your supermarket business, you could potentially lose tens of thousands of dollars. Your CMA will give you what you need to set the right price – or at least a range to work with. Your CMA will also be the most thorough tool you can use to set the right price for your business, or at the very least give you a range to work with.