What is SAV?

Are you wondering why so many business for sale ads have the acronym SAV and what does it mean?

Simply put, SAV or stock at valuation means the stock held by the business, when the ad says “Plus SAV”, what they are saying is the asking price for the business being sold does not include the stock, this will need to be purchased on and above the price of the business itself.

The most common way the SAV value is determined is by conducting a stocktake and cross referencing them against the purchase invoices.

Obviously, there will be instances where this is not possible or the business itself is the manufacturer of said stock, in these cases the value can be calculated using other methods.