Need help/advice valuing a business.

So I've got an opportunity to take over a business we are currently retailing out of. The business is making a slight profit but only because of the owners running the retail operations and not paying themselves wages. Due to this they are looking at getting out of the business.

I believe there are tons of opportunities to turn things around make the business much more profitable, and it will interfere little with our current business. We would be able to do most of the duties of our previous business as well as adding additional legitimacy due to the brick and mortar location.

My question is to everyone on here is how would you value this business. Obviously we would take assets into consideration as inventory is important to retail business, but how do you value the miniscule profits made by the business assuming the owners aren't paying themselves for the work put in outside of the tiny profit?

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