What Is A Business Telephone Number Worth?

[Avshalom]

We have closed our 40 year old muffler shop. Annual gross sales were about $500K per year. It is located on a high visibilty, busy highway intersection that we are planning to sell, perhaps to a gas company or liquor store. We need time to appraie and market the land and building, but we have been approached by a man who will lease it for one year and purchase all of the remaining equipment.  He would like to buy the phone number as well. Any idea on what it is worth? We were only keeping it for the alarm system. Thanks, MRIGGS

[Giacomo]

Dear MRIGGS,

The phone number is not your property. You acquired the right to use it. Under common law, the right to use it rests exclusively with you(the original user) as long as you use it. Your potential buyer may see a marketing tool in this number; I do not see it since this number has been kept for the alarm system. By keeping it he expects that his new business will have a regular flow of calls although with a different purpose, he will have the opportunity to introduce the new activity that will take place in that location. It seems that the potential buyer sees that telephone number as an intangible asset that will enhance his business. Your accountant should have adequate basis for estimating the value of this market-or-customer related intangible asset. I hope that helps. I look forward to receive your feedback.

I wish you the best in your future affairs.

Sincerely,

Consuelo Herrera

International Accountant and Fraud Examiner