Businesses for sale question

I am not sure about the “French System” but business in Cambodia is pretty much the same as anywhere else in the world, so business transactions are more based on cash rather than via the Bank as in Europe or the USA. Businesses are valued in accordance to the value of the property, any stock on hand and goodwill, goodwill is based on demand and supply, basically how desperate you want to get the business, you will pay accordingly. With otherworld's, land and building is negotiable, goodwill is negotiable, stock has a base value so no extra charge. Hope the above helps you. Regards Mike

Need to add, Goodwill is not only basesd on how desperate you want the business, but also on how he/she is desperate to sell, you might just get a lucky packet if you look around, regards Mike

Thank you Mike CL.
I understand the whole thing about goodwill.
If a business is running and bringing a revenue, it is easy to figure out the goodwill.
What i do not understand is how much goodwill there is in paying for a business that is "Out of business".

If out of business or no business, than there is no goodwill to pay, only assets can be bought, e.g. land, building, stock etc, which represents a value . Goodwill is applicable to a running concern and derives of the following, business income and expectation of future economic benefits. There is however another aspect to it, for instance if a restaurant has stopped operating for what ever reason, let's assume bad or miss management but the restaurant has the 3L's, location, location, location, one might consider to pay "goodwill" based on the location as it might represent future economic benefits. Overall it is a tricky situation and careful analyzing of any business purchase is imperative. Hope it was of help to you, regards Mike