Auction and appraisal business, Vernon: first read
Source: Business Finders Canada listing MLS 1606 (asset or share sale), read 2026-10-27. Listing figures are the seller's.
Auction and appraisal business, Vernon, listed at $345,000 as an asset or share sale with reported annual sales of $1,860,000 and cash flow of $155,000 (listing figures). Founded in 1973 and run by the current owner for about 40 years; monthly timed online auctions, on-site auctions, appraisals, and estate and business liquidations; experienced staff and transition support, with possible part-time contract involvement after the sale. The business uses a 5,000 square foot building on a 23,550 square foot site that is excluded from the price, under a proposed five-year lease with two five-year renewals; the listing says the price is below an independent valuation; last updated 2026-10-19.
First read: the asking price is 2.2x the stated cash flow. At 20% buyer equity, a 15% vendor take-back and a 65% term loan, debt service would run about $54,000 a year, which the listed cash flow covers about 2.9 times, and about 2.0x at 30% lower cash flow. The questions sit outside the multiple. In an auction business, sales can mean gross hammer value of goods sold or the commissions and fees the business keeps; a margin of 8% on $1.86 million reads very differently if the revenue line is commissions. The owner's 40 years of relationships with estates, lawyers and dealers are the source of consignments, and the building belongs to the seller, so the lease rate is a price term in disguise.
The three things a buyer should check first
- Whether $1.86 million is gross auction sales or the business's own commission and fee revenue, with three years of both.
- Where consignments come from by source, and how much depends on the owner personally; the terms and length of the transition and contract role.
- The proposed rent against market rent for the building and yard, and whether the $155,000 already carries a rent charge.
A Deal Risk Screen on this listing would rebuild the earnings, score the four risk pillars, set out the price the cash flow supports at a stated coverage, and give the five questions to ask before an LOI. Two sample screens are on the samples section of the home page.
This note is general information from public listing figures, not advice on this purchase. Deal Diligence has no connection to the seller, the broker or the business.