https://www.channelpro.co.uk/news/8240/resellers-still-struggling-for-hardware-margins Margins on PC parts are razor thin. My understanding is that it's mostly between 5-10% So as a "low service" operator, I'd guess they're closer to the 5% end. So let's call it 5 Million in Gross Profits. From this figure, you need to subtract rent, wages, shrinkage, etc, to get a net profit. Multiply this by a "customer stickiness" or good will multiplier, which is the hardest part. Even for thin margin businesses, if your customers are "sticky", like mobile phone or internet contracts (Most people are too lazy to move), then the multiplier can still be high, 4-6 isn't unusual. For unbranded walk in retailers, where if a whole build ends up $10 cheaper on another web site, builders would go there, you'd expect the multiplier to be low, maybe 2-3. Add to this the value of stock, and you have a reasonable price for the business. Unless they own some of the buildings they occupy, it seems like the offer price is a bit generous. (Even if expenses were kept down, and they could run on under $1m a year, that should still only bring us up to $10-12M + Stock), but that often happens when someone really just wants a business. Or, perhaps they have shown some very stable sales figures, so the buyer accepts that their customers are very loyal. Perhaps they have supplier accounts to some small business IT consultants. (The kind of guys that do like desktop support IT for real estate, small law firms etc.).