Remember that Fair Market Value is the price that a willing seller will accept and a willing buyer will pay, both parties being in possession of the relevant facts, and neither under compulsion to sell. To learn more, there are several excellent reference books relative to business valuation which can be found at this web site. One very useful resource is, Preparing Your Business For Sale, by Russell L. Brown. I ve provided a link to it below. Distribution firms may sell for 2-4 times earnings.
Retailers run the gambit.
Many rules of thumb then instruct you to add such things as inventory and real estate. Be careful in using any multiplier. You must know exactly what should be multiplied. Retail parts stores have uniquely different characteristics than do a new car dealerships, used car lots, service and repair facilities, quick lubes, auto rentals, etc. Inventories, floor planning, capital equipment costs and condition, competition, market share, dealer incentives, and many other factors must also be considered.