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Florida Businesses Sold in Florida 2013 Year End Summary

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Florida Businesses Sold in Florida 2013 Year End Summary

 

SellaBusinessFlorida.com

Florida Business Sales and Business Sold in 2013

 

I am a Florida Business broker based out of Ponte Vedra Beach (near Jacksonville)  working with business owners selling their Florida  businesses, and individuals and business owners looking for acquisitions.  Prospective business buyers I work with are located in Florida, US., and Business buyers in Europe and throughout the world.

As a  member of Business Brokers of Florida, which is the largest state Association of Business Brokers in the United States we have access to significant data regarding businesses being bought and sold .   Thousands of businesses for sale are represented by over 1000 Business Professionals involved with business acquisition and sales that are members of this Association.  Business brokers in this association  list their respective businesses for sale and prospective business buyers on a centralized listing site and buyers and sellers of businesses are brought together.

Several thousand businesses for sale are listed, modified, and advertised thru this Association.  They can also be viewed on my website here at Florida Businesses For Sale.  To further my knowledge,  I believe understanding the marketplace in which Florida  business may be sold is furthered by a review of the data surrounding businesses being bought and sold in Florida. The below are a few statistics, totals, and items of note surrounding the business acquisition and sales market in the State of Florida. Other businesses are bought and sold without the assistance of members Business Brokers of Florida, and that info is not included in this analysis.

Businesses Sold in Florida through Business Brokers of Florida  in  2013 – 909

  • Businesses Sold in 2012- 950
  • Businesses Sold in 2011- 859
  • Businesses Sold in 2010- 931

Averages of all businesses sold in 2013:

  • Average Sales – $572,000   Average Price Sold For- $286,000   Average Adjusted Net Cash Flow- $114,000  
  • Days on Market  225 (note all DOM (days on market) numbers DO NOT include those taken off the for sale market)
  •   Florida Business Sold in 2013 for $1M or more-30
  •   Florida Business Sold in Florida that included Real Estate- 47 (only about 5%)
  •   Category with most Businesses Sold- Restaurants- 199 sold in 2013  currently there are 3209 Florida Businesses For Sale and of those for sale  717 are Restaurants. (22% of all businesses for sale are Restaurants)
  •   Florida is a highly Service based economy, the other categories with highest number of Sold Businesses in 2013 in Florida  are in the service sector and include Hair Salon, Dry Cleaners, Lawn Service, Pools Service Businesses.
  •   Florida Businesses for sale requiring Down Payment of $50,000 or less – 480
  •   Florida Businesses For Sale with Net Income of $100,000 or more- 1264
  •   Florida Businesses For Sale with Net Income of $300,000 or more- 239

I am a Business Broker based in the Jacksonville Florida area ( main office is in Fort Myers Florida area).  Below is some 2013 information about Business Sold in the Jacksonville Florida area and Businesses For Sale in the Jacksonville Florida area.

  • Jacksonville Florida area Businesses Sold in 2013- 53
  • Averages for the 53 Jacksonville Florida Businesses Sold in 2013:
  • SALES- $558,000      Average Sold Price- $226,000   Average Adjusted Net Income- $142,000    Average Days on Market*- 218 Days  
  •   Total Businesses For Sale in Jacksonville Florida area as of Jan.1 2014. -227
  •   Jacksonville Florida area Businesses For Sale with Net Income of $100k or more- 99
  •   Jacksonville Florida area Businesses For Sale that require Down Payment of $50k or less- 33
  •   Jacksonville Florida area Businesses For Sale that have Net Income of $250k or more- 26
  •   Averages for the 53 Jacksonville Florida Businesses Sold in 2013:

I have been following  Florida Business Sales over the last 4-5 years and the above numbers have been somewhat consistent.  I believe there remains a pent up demand in both the Buyers and Sellers side.  The buyers still are slowed down by financing options and some potential Sellers are still delaying putting their business up for Sale due to uncertainty.  As a former long term business owner, I realize the thought and contemplation that goes into the decision to sell ones business.  The only real certainty is that another year will come and go, time marches on, at this time next year will your activities be included in the 2014 year end summary?

*All above info compiled from data available via the bbfmls website. And addresses information about businesses being bought and sold and reported thru this Professional organization of Business Brokers of Florida.

For more info or questions regarding the Florida Business Acquisition Market or Florida Businesses for sale please contact

Scott M Messinger

Scott@Sellabusinessflorida.com

239.770.2421

 

A Word on Buying or Selling a Business

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Considering Buying or Selling a Business?

 Taxes Transition Risk Future Asset List Owner Benefit  Working Capital License transfer CHANGE Liabilities  Seller Financing SBA,  Trucks, Intellectual Property EBITDA Cash Flow Inventory Debt Depreciation Goodwill  Money  Customer Base When to Tell Employees    Balance Sheet             Business Broker  Attorney  How?    Accountant    Marketing  Adjusted Net  Non Compete     Negotiation  Training  Management  Offer to Purchase  Confidentiality Lease  Accounts Receivable    Franchise Valuation Multiples   NDA      Revenues             Net Income  Depreciation   Earnout  Closing Agreement  Job  Deposits  Employees Trademarks       Fear       Trade Name Retire  Security     Promissory Note  CPA     Personal Guarantee Timing Work UCC  Family Business  Exit Plan   Website   When?  Partner      S-Corp  Clients    Relationships  Price    Payment     real estate  Assignment  Plan    Help!

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Is EVERY Business For Sale at “Right Price”

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As a Business Broker based in Florida I spend ample amount of time prospecting/marketing for prospective business sellers and prospective business buyers.  I use various marketing methods to market to both buyers and sellers.  While in the process of  prospecting for business owners considering the exit or sale of their business it is not uncommon to hear “I would be interested in selling my business  if I can get the right price”.

Business For Sale – The Right Price

Recently I engaged in such a discussion- the owner told me he would very much like to sell his business and start a new somewhat unrelated business if the could get the right price for his business.  I then asked what he felt may be the right price and he followed up with “I don’t know”.

The “right price”  may not equal to the business value, or the price a qualified interested buyer is willing to pay.

For an actual transaction to be consummated,  the right price needs to resemble actual business value.  If the “right price”  is actually 2-3 times what estimated value of the business is, it is probably best for all parties involved to spend their time elsewhere.

But is every business for sale?  What if a “sweetheart deal” is presented to  a small business owner in Florida?  If you had a business that is not “For Sale” , and you know it to have an approximate value of $500k  and someone walked in and made you a cash offer of $800k cash is your business now for sale to that party?

Is now the time to Sell My Business?

From my personal experience of business ownership, I think yes most businesses are for sale if the “price is right”.  But not all businesses.  While owning my previous business in the 10th year  I had gotten a significant offer for the business, but I had long terms plans and  aspirations for the business.  At that point in time I had made several acquisitions and made several other offers on other related businesses and was comfortable with valuations, synergy calculations,  and felt I knew what the value of  my business was.

There was a lot of merger and acquisition activity that was occurring in my industry at that point in time and I was presented with a cash offer from a  very strong company, and was at about a 25% premium to what I and my CPA viewed as current value.  So I had a very strong cash offer from a well qualified business- do you take the money and move on.?

Business For Sale – The Value

In my opinion business values are affected by both  macro and micro economics.  What is the state of the economy, what is the state of the merger acqusition economy and what is the state of your industry/your business?  These elements effect what sort of multiple of cash flow your business may be worth.  If the economy is such that valuations were/are  running high do you look to exit your business because valuations, and or those high multiples may not come around again?

In my situation I consulted with my “trusted advisers” around me my CPA, my attorney, my wife.  Yet ultimately the decision was mine.    My CPA did tell me something that strongly influenced that decision.  He had told me “You,ll know when you are ready”.  It was a great price great offer, but I wasn’t ready and ultimately sold my business 10 years later and got fair value for the business. So is every business for sale if the “right price” comes along.  I think that most businesses are for sale if the right price comes along, but not all businesses.

 

 

 

Starting Or Buying A Business-Own or Rent Building?

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Starting a business, or buying a business involves many decisions  ranging from what one should  put on your business card to where to locate your business.  Many small businesses are run from ones own personal residence,  and there are many advantages and disadvantages that can come along with that strategy.

But operating your business from a leased space, rented space, or a space you or your business would buy, can be a very important decision for your business.  The business that I had owned for 20 years, I had owned the building and surrounding property, (I still own and lease back, even after the sale of the business).

Owning A Real Estate For Your Business

Currently my role as a business broker has me working with business owners that both own the building they operate the business from they are selling and business owners that rent their space. Of  almost 1000 businesses sold in the state of Florida in the last year,  thru the Business Brokers of Florida of which I am a member of, less than 8% of them involve real estate.

Is it better to Own or Rent your Businesses Property?  

Most business owners in Florida that sold their business rent their buildings.  There are just way more non- owner occupied properties than owner occupied properties.  Again I owned and currently own and rent out the building I operated my business out of.  My thought process was that I had long term plans for my business and I viewed it as a means of building equity.  I do look at it a little different in today`s economy.

I do know of several business owners here in Florida that bought their building 5-10 years ago, ( they viewed the acquisition as an investment) and while the business may be doing somewhat ok during these difficult lean times, the building is so upside down that it may take 5, 10+ years or more, before the amount owed on the building is equal to or greater than market value.

To exacerbate that dilemma, ” like spaces” may be rented at a fraction of what monthly mortgage, insurance, and taxes payments may be.  It would be nice to be able to treat this expense as other expenses and when you have a more cost effective means just pursue that route, but buying/selling a building (or a business)  is not a very liquid investment- especially in today`s market.

Some Pros of owning a building may include:

  • more control, no landlord to report to and changes to your building allow you greater flexibility
  • potentially over the long haul you can accumulate equity
  •  If you are buying now, are you buying at a real value price, and its hard to argue that locking in at todays interest rates would not be a good thing.

On the Con side:

  • One must consider the opportunity cost of the money that is devoted to a down payment when buying a building- how much could that money have helped you grow your business?
  • If you need to move your business a  rental/lease agreement may allow you greater flexibility.
  • Owning a building is more responsibility

Operating lean, low overhead, low monthly expenses greatly enhances the likelihood of acceptable profits.  I am pleased I had owned my building I operated my business out of, but would I make the same decision today to buy a building to run my business from?

If I were buying a business here in Florida would I require that I can buy the building along with the business I am buying- today I am not so sure. Leaning  towards the flexibility of renting until  further clarity on where  on economy is truly heading seems to be a reasonable approach.

Florida Business For Sale Sold Activity (October 12,2011)

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Florida Business For Sale  Florida Businesses Sold Activity (Oct.12, 2011)

I am a Florida Business broker working with business owners selling their Florida  businesses, and business owners looking for acquisitions.  Prospective business buyers I work with are located in Florida, US., and Business buyers in Europe and throughout the world.

As a  member of Business Brokers of Florida, which is the largest state Association of Business Brokers in the United States we have access to significant data regarding businesses being bought and sold .   Thousands of businesses for sale are represented by over 1000 business brokers that are members of this Association.

These business brokers list their respective businesses for sale and prospective business buyers on a centralized listing site and buyers and sellers of businesses are brought together. Several thousand businesses for sale are listed, modified, and advertised thru this website.  Valuable information regarding Florida business for Sales and Florida Businesses Sold help me as a Business Broker Professional  keep track of the ebb and flow of the Florida Business Acquisition Market.  Understanding a business to assist in selling that business requires an understanding of the numbers behind  that business.  And understanding the marketplace in which this business may be sold is furthered by a review of the data surrounding businesses being bought and sold in Florida.

The below are a few statistics, totals, and items of note surrounding the business acquisition and sales market in the State of Florida. Other businesses are bought and sold without the assistance of members Business Brokers of Florida, and that info is not included in this analysis.

Recent Businesses Sold in Florida Activity (as of  Oct. 12, 2011)

  • Businesses Sold in Florida through Business Brokers of Florida  in last 30 days  – 28 vs 63 in prior 30 day (July 26,2011) documented  period
  • Top  industry of  Businesses Sold in Florida through Business Brokers of Florida in  last 30 days:   Restaurants   (as usual…)
  • Avg Days it took to sell Florida Businesses Sold in last 30 days  – 162 (about 5 months vs.  277 days-  (9 months)- in last documented 30 day period (July 2011), doesnt include businesses that were removed from market without selling

As of Oct. 12, 2011…

Businesses Currently For Sale through Business Brokers of Florida – 3301 vs. 3336   in last 30 day period. about same

  • Number of Business Currently for Sale in Jacksonville Florida Area (Duval County and St.Johns County) with Adjusted Cash Flow Greater than $100,000- 67
  • Number of Business Currently For Sale In Jacksonville Fl area with adjusted cash Flow greater than $200,000 –  21
  • Number of Business Currently For Sale In Jacksonville Fl area with adjusted cash Flow greater than $300,000 – 9

 

Current Business Interest and Activity Obseravtions: as of Oct 12,2011

As a business broker I work with many “Business Buyer Prospects“.  I realize so many will remain perpetually  “Prospects” and a select few will actually result in being “Business Buyers” I both understand and accept this fact. 

But recently  I have been working with several buyer prospect that had a goal/objective of finding Florida Business For Sale with adjusted cash flow of $300,000.

  • Of the 3301 business for Sale in Florida 193 have adjusted cash flow greater than $300,000  about 5% !  
  • Of the 3301 business for Sale in Florida 103 have adjusted cash flow greater than $400,000  only about 3% !
  • Number of business sold in Florida with adjusted cash flow greater than $300,000 in last year – 36 

Buying 2 synergistic businesses that may produced a combined $300,000 adjusted cash flow or owner benefit is a strategy that is being considered.

*All above info compiled from data available via the bbfmls website. And addresses information about businesses being bought and sold and reported thru this Professional organization of Business Brokers of Florida.

For more info or questions regarding the Florida Business Acquisition Market or Florida Businesses for sale please contact

Scott M Messinger

Scott@Sellabusinessflorida.com

239.770.2421