Tag Archives: landscape business for sale

Florida Business For Sale Florida Businesses Sold Activity 2011

By | | , , , , ,
Leave a comment

Florida Business For Sale  Florida Businesses Sold Activity 2011

I am a Florida Business broker working with business owners selling their Florida  businesses, and business owners and individuals 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.

Businesses Sold in Florida Activity for 2011

Businesses Sold in Florida through Business Brokers of Florida  in  2011  – 859  vs 931  in 2010.  About a 7% drop.

Averages of all businesses sold in 2011:

Average Sales – $541,000   Average Price Sold For- $243,000   Average Adjusted Net- $96,000   Days on Market  224 (note all DOM (days on market) numbers DO NOT include those taken off the for sale market)

Florida businesses sold in 2011  Items of note:

  • Restaurants sold in Florida – Number sold- 199   Avg Sales-$326k  Avg  Sold Avg.Price-$140k     Adj Net-$67k  DOM 211

over 20% of all businesses sold in 2011 were restaurants!  Currently 670 are for sale

  • Dry Cleaners/Laundry Business sold in Florida-39  Avg. Sales-$174k Avg.  Sold Avg. Price-$119k   Avg. Adj Net-$64k

fairly active sector- fairly low business entry point, and fairly easy learning curve.

  • Manufacturing businesses sold in Florida- 15   Avg. Sales $1.3M   Avg.Sold price-$713k Avg. Adj Net-$148k DOM-275

Florida is a very service oriented business community, not a lot of manufacturing activity, relatively.

  • Lawn Service Businesses Sold in Florida-33 Avg. Sales-$190k   Avg. Sold Price- $ 115k  Avg. Adj Net- $73k  DOM-186

lots of lawn service business sold and for sale in Florida but almost exclusively “smaller” with average sales of $190k

  • Insurance related businesses Sold in Florida-15  Avg. Sales- $226k    Avg. Sold Price-$335k  Avg. Adj.Net- $110k  DOM -166

I took note of insurance because they received a very good multiple when compared to most other industries 3+ times adjusted Net. and the average days on market less than 6 months- a fairly fast sell time.

As of December 28,2011…

Businesses Currently For Sale through Business Brokers of Florida – 3392 vs. 3373   in last 30 day period.  about same.

  • Number of Business Currently for Sale in Jacksonville Florida Area (Duval County and St.Johns County) – 209
  • Number of Business Sold in Jacksonville Florida Area in2011- 48
  • Number of Restaurants for Sale in Jacksonville Fl Area-56 (about 25% of all Jacksonville businesses for sale)

Current Business Interest and Activity Observations: as of  December 28,2011

Is there a pent up supply being created.?  Every year business owners get closer to exiting their businesses.  Another year has gone by.  How many business owners planned or intended to sell their business in 2010 or 2011 and have decided to delay that action?

Will this “supply” of businesses for sale affect the price that a business may realize due to a potential increase in supply?  If demand stays consistent and supply increases, prices by market forces tend to move down.  So how does one balance the strategy to wait until company performance improves vs selling into a potentially lower valued market?  I always like to think tomorrow will be better as I am a fairly optimistic person- things will get better, just not sure how many tomorrows its going to take.

 

  • *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


 

Number 1 Reason For Selling Your Business

By | | , , , , , , ,
Leave a comment

What is the Number 1 Reason I hear when speaking to Business Owners about selling their business?-  Why are you looking to sell your Business?  — ” Because  I Am Ready”.     For those of you who have owned a business for any period of time this is a response that is fairly easy to understand.

I am a business broker based in Florida (and business owner)  and speak to many prospective buyers and sellers of business and understanding  the “Why” for both parties is so important in assisting the buyers and sellers of businesses.  I really think that most people that have given a fleeting thought to buying a business believe that business owners want to sell their business and therefore something must be wrong with the business.  Actually I am currently working on selling a Landscape Business in Florida.

Business Broker

Photo (c) beaconbrokerage.ca

The business owner has a  good quality business for sale, good cash flow, a comfortable lifestyle.  He has owned the business for x years and is “ready to do something else”.  He will be relocating out of state, he owns a successful business he is looking to sell. Recently we spoke about the potential purchase of another business in an unrelated field and his hesitancy about buying a business because why would someone sell a “good” business- .  And this comment is coming from someone selling a “good business”.

I also am currently helping an owner of a Computer Service Store For Sale who`s revenues are up 30% over last year, Profits are up 20% plus and is seeking to sell his business at less than 1 times annual adjusted cash flow.  He also is anxious to start a new business opportunity with a close friend, and that endevor is awaiting the sale of his business.  A good business at a good price and the owner is “ready to move on”.

Solid Reason For Selling Your Business

Good businesses get sold for very good reasons.  Being “ready to do something else” is a good reason.    A seller of a business needs to be ready to sell.  Really- you only really exit your business by 2 means.

1. By your choice-your timeframe, your plan.

2. Not by your choice– closing due to business failure, business conditions, bankruptcy,Forced Sale.

Granted there may be certain undesirable business or personal events that prompts one to “be ready”.  A business owner may have additional employee problems and decide that enough is enough and that is the impetus to sell ones business.  New frustrating regulation, customer problems, and any one of numerous  problems a business owner may face may be  the “final straw” and induce a business owner to pursue the sale of the business.

But again for any  business owner that has owned and managed a business for an extended period of time problems such as these come and go.  Business can be going quite well and the owner may just be ready to move on.  Actually selling a business while the business is doing well is a well thought out exit strategy for a business owner.  And yes problems can and, do come along with the business.  Problems within the business does not make a business a bad business.

A business owner may “just be Ready” to:

  • retire
  • try  something new- a second career
  • want to move or relocate
  • Just be done running the business I have been running for the last 20 years

I am not aware of the existence of a Perfect Business. Even the best of business opportunities will likely contain issues and or undesirable situations.  But if you truly want to own your own business and move into the role of business owner- Understand that good business are being sold by business owners that are just ready…. to move on.

I’m Looking to Buy a Business

By | | , , , , , , , , ,
2 Comments

“I’m Looking to Buy a Business“.  As a business broker based here in Florida  this is a statement that I hear often.  Within  the industry various statistics are stated regarding business buyers.  I have heard that 9 out of 10 of those that say they want to buy a business actually don’t buy a business.  Based on my experiences that statistic may hold true.  There are so many currently employed that during their 40- hour work week aspire to “be their own boss” by starting their own business or buying their own business.

Live Your Dream – Buy A Business

There are many unemployed out there that also think they may want to buy or start a business.  So while there are probably as many as millions of those both currently employed or unemployed that aspire to buy a business or start  a business, there is a much much smaller subset of those that even attempt to act on those aspirations.  Of that small percent that actually act on their dreams and or  goals a small percent may contact a business broker such as myself, and a small percentage of that group may find themselves at a closing table signing documents and actually buying a business.

Many business acquisitions are done with out the assistance of a business broker.  The numbers of how many entrepreneur types set off to buy a business and successful find a business without the professional assistance of a business broker are unknown to me.  I personally  had bought several businesses on my own without the assistance of a business broker.

These were strategic acquisitions within a certain industry.  I personally feel these types of acquisitions have a higher success rate.  Existing relationships, industry knowledge, focus,  and synergies provide for a higher success rate.   My views on this are based upon a fair amount of first hand experiences of myself and peers. This discussion is based primarily on non- strategic type acquisitions as referred to above.

Buy A Business

Photo (c) richardparker.com

Just one of the many steps in the process of buying a business that I assist in is how to apply some focus and some parameters to the basic statement of “I want to buy a Business”.  Being my company website is Sell a Business Florida I assume the person contacting me thru my website is looking to buy a business in Florida, but very often many of the other parameters have not been carefully considered.

When one is looking to buy a business criteria can range from looking at a certain specific company, to a certain “type” of business, to “I want to buy A business in the state of Florida”.  If you (or someone that you know) are currently employed and want to act on aspirations to buy their own business and gain the feeling of control of ones destiny, or are currently unemployed and view buying a business  to be the best means to a gainful career please consider the following.

Things To Consider Before Buying A Business

Below are a few parameters to consider when searching to buy a business.  The list can be long and extensive but the below is a starting point that allows the search to buy a business to maintain some focus.

  • Location-  For business purposes and family purposes does the business need to be in a certain State, County, City, or a certain side of town?  Or are you looking to buy a home based business that you can operate from most anywhere in the world?
  • Type of Business-  Are you looking to buy a certain type of business  like a Landscape Company For Sale or Towing Business For Sale , or are you looking to buy a business that has maintained certain performance levels such as “I want to buy a business that has at least 3 consecutive  years of  Net Income of $100,000+”.
  • Are you looking to buy a Hands on or Hands off business.
  • How much Available Capital to do you have? – This will set a range of businesses that you may consider.  Keep in mind that both Available capital for buying a business and Working Capital for running the business should both be considered.
  • Are you looking for a business that includes real estate
  • Are you looking for a business that provides Seller Financing?

Prospective Business Buyer– ” Hi Scott I am looking to Buy a Business in Florida” Scott– ” Great,  What type of business are you looking to buy” Prospective Business Buyer – “I really don’t know”