Electronics Retail Industry

Including Home and Auto Sound Systems, Home Theater

There are 24,000 retail electronics outlets in the US, including car and home audio stores.   The market is dominated by a few very large companies (Best Buy, Circuit City, Radio Shack), but there is an army of small and mid-size computer and cell-phone stores, car and home audio retailers and installers.  

A primary characteristic of retail electronics stores is the need to manage the inventory.   This means, keep up with constant and rapid change.   New products, new suppliers, new models, new technologies, all create a need to manage the inventory, reconfigure the merchandise displays, and keep the retail staff up to date.   Knowledgeable staff, the right selection of items in the store, smart pricing and effective advertising are the keys to success.   Inventory is usually the primary asset, and a major component of the value.   The lease terms and Sales per Foot are two other important factors to be considered.

There are plenty of reasons why a valuation might be needed, starting with a sale of the business, but including divorce, death of a shareholder, a need to bring in a partner or to buy out a retiring partner, or possibly set up an ESOP, to name a few.  

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The BVG consumer electronics retail specialist is Clay Reid , a former electronics retailer, business broker, and now a business appraiser.   He's backed up by the other people at the Business Value Group, and the folks at BEAR and their state of the art valuation software and valuation databases.