31 years running our hardware store, and the only offer is $90,000. Is that it?

The question

An illustrative letter.

The answer

My dear, thirty-one years behind the counter of a hardware store is a life of keys cut, know-how shared over the paint aisle, and neighbors helped through broken pipes and storms. Of course $90,000 feels like an insult. Let us look at how buyers think, so you can tell whether it is a fair price or simply the first one.

How do buyers value a small business?

Most buyers look at what the business earns for its owner each year, often called seller's discretionary earnings: the profit plus the owner's own pay and certain owner expenses. They then pay a multiple of that figure. In the first quarter of 2026, according to BizBuySell, the median small business sold for $350,000, with a median cash flow of about $165,000 and an average cash flow multiple of 2.7. Every business is different, and many sell for far less or far more, but it shows the logic: a buyer is paying for the income your store will produce for them, not for the years you have given it.

That is painful to hear, but it is also useful. It tells you what to measure, and what might raise the price.

What exactly would a buyer be getting?

Separate the pieces, because an offer often lumps them together.

• The business itself: its earnings, customers, suppliers, name and staff.
• Inventory, which in a hardware store can be substantial, and is often valued separately at cost.
• Fixtures and equipment, from shelving to the key-cutting machine.
• The building, if you own it. That is a separate asset entirely. Some owners sell the business but keep the building and lease it to the buyer, turning it into a monthly retirement income.

Ask whether the $90,000 includes inventory. If it does, the business itself may be valued at very little, and that is worth understanding before you answer.

How do I get a proper valuation?

Hire a business appraiser with a recognized credential, or a reputable business broker who knows retail. Bring three to five years of tax returns and financial statements, an inventory count and details of any lease. A clear valuation gives you a number to negotiate from, and it may also show you simple improvements, such as cleaner books, that could raise the price.

Could my employees buy it?

Possibly, and many owners find this a deeply satisfying way to pass on a life's work. About 2.9 million U.S. employer businesses are owned by people 55 or older, supporting around 32 million jobs, according to Project Equity, which works on employee ownership. Common structures include an employee stock ownership plan, a worker cooperative or an employee ownership trust. These transitions are usually financed mainly with debt, and the seller is often paid partly over time. They take planning and professional help, but they can keep the store open, keep jobs local and pay you a fair price.

What other paths are there?

• Other buyers. A broker can market the store more widely than a single local offer.
• Seller financing. Offering to let a buyer pay part of the price over several years can attract more buyers and a higher price, though you carry some risk.
• A buyer with an SBA loan. Many small business purchases use SBA-guaranteed loans, which can let a capable buyer pay more upfront.
• A planned closing. If no fair offer comes, selling the inventory and fixtures and closing gracefully is an honorable choice, though it usually brings less than a going concern.

How do I make the store easier to sell?

Buyers pay more for a business that can run without its owner. Write down how things are done: ordering, suppliers, pricing, opening and closing. Make sure your books are clean and match your tax returns. Check how long your lease runs, if you rent, because a buyer will want to know they can stay. And introduce your longest-serving employees as part of what the buyer gets. A store that hums along on a Tuesday afternoon without you is worth more than one that depends on you being at the counter.

What about taxes?

Selling a business can create capital gains and other taxes, and how the price is divided between inventory, equipment and goodwill affects the bill. Being paid over time, through an installment sale, can spread the tax across years. A CPA should review any offer before you sign.

What about my own retirement?

Look at the sale as one part of your retirement income, alongside Social Security, any savings and perhaps rent from the building. Knowing what you need each month tells you what price, and what payment terms, you can accept.

You built something that mattered to your town, my dear. Get it valued properly, talk to your employees, and take your time. The right buyer will see what you built, even if it takes more than one offer to find them.

One thing to do this week

Gather five years of tax returns and an inventory count, and ask whether the $90,000 offer includes inventory and fixtures.