I've just posted a new video to YouTube showing business owners how we can work together to determine a likely value for their business. Take a look.
What's My Business Worth
Jon Hunt
Saturday, December 17, 2011
Friday, July 29, 2011
The ROI for using a business broker
We often talk to business owners and those who would like to be about the return on investment, also called the acid test. If the numbers don’t provide a solid ROI it’s unlikely a buyer will make an offer or at least one that’s in the neighborhood of the asking price.
But what’s the Return on Investment for using a Business Broker. For buyers it’s a pretty easy decision. A broker does the hard work for you. But a business owner can put the business up for sale without using a business broker. So, as the old commercial said, ‘Where’s the beef?’
There have been studies performed and many who have sold their business said the use of a business broker resulted in a more confidential sale process and reduced stress. But many also said they felt they got more for their business than if they had not used a business broker.
Here are three big reasons it pays to use a business broker:
1. We know how to “package” a business for sale and where to market it. Sure, you can find internet sites to advertise your business, but we know them all and we know which ones are good, better and best. We also market your business to the more than 800 members of the Business Brokers of Florida. That is the business multiple listing service for Florida businesses.
2. We know how to recast your financials to present an accurate picture of true owner benefits. In many cases we seek to undue any tax strategies you or your accountant may have put in place. A tax return’s net number doesn’t reflect the true benefit of owning a company. It’s critical a buyer understand that.
3. Perhaps most importantly we will work to sell your business while you work to maintain or increase the value of your business. If you are taking time to learn the process of selling a business, market your business, respond to inquiries and qualify buyers who is minding the store.
Making the decision to sell a business isn’t easy, but making the decision to use a business broker, and not a residential or commercial broker, should be one of the easiest decisions.
Wednesday, July 20, 2011
Janitorial Service Buiness Price Reduced
We've just reduced the price on this great business to $150,000..which is less than two times the annual owner benefits. This business does not require you to perform the cleaning functions and there is huge room for growth. For more information contact me for a non-disclosure statement.
Wednesday, June 29, 2011
Janitorial Service Buiness Price Reduced
This is a great St. Johns County business. We've just reduced the price to $160,000 and owner benefits are more than $80,000. Sales are up 14 percent year to date. Owners spent little time in this business and the growth potential is tremendous.
Friday, April 1, 2011
The Moving Van Came
I had an interesting experience some time ago. I took a buyer to a meeting with the seller of a sandwich shop.
When asked what his timetable was for selling he said, "Today. I don't want to own this business. I never wanted to own this business."
He certainly gave all the signals of a motivated seller.
The buyer made an offer and there was a counter offer...then the buyer made a better offer, which was, in my opinion, a very good offer.
The seller rejected the offer and the deal died.
This week the moving van came and hauled away the counters, chairs, refrigerators and other equipment.
It's a sad story that did not have to have to be sad. The seller could have walked away with a check and fewer headaches and stress...now he probably still has the headaches and stress, but he doesn't have the check.
When asked what his timetable was for selling he said, "Today. I don't want to own this business. I never wanted to own this business."
He certainly gave all the signals of a motivated seller.
The buyer made an offer and there was a counter offer...then the buyer made a better offer, which was, in my opinion, a very good offer.
The seller rejected the offer and the deal died.
This week the moving van came and hauled away the counters, chairs, refrigerators and other equipment.
It's a sad story that did not have to have to be sad. The seller could have walked away with a check and fewer headaches and stress...now he probably still has the headaches and stress, but he doesn't have the check.
19 Clay County Businesses Listed for Sale
Clay County Jon Hunt 904.823.7225
| Advertising |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74703040 | Clay, Florida USA | Advertising/Promotion | 149,000 | 137,000 | 40,200 | 68,350 |
| Animals/Pets |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74703014 | Clay, Florida USA | Pet Grooming | 70,000 | 50,000 | 33,840 | 218,000 |
| Automotive |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74703134 | Clay, Florida USA | Auto General Repair | 10,000 | 10,000 | 0 | 0 |
| BBF-74702962 | *Lender Pre-Qualified* Clay, Florida USA | Auto Quick Lube | 425,000 | 50,000 | 101,318 | 335,663 |
| Beauty/Personal Care |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-73900329 | Clay, Florida USA | Tanning Salon | 75,000 | 40,000 | 46,322 | 133,693 |
| Cleaning |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74703214 | Clay, Florida USA | Maid Service | 225,000 | 125,000 | 66,270 | 679,213 |
| Communications |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74702945 | Clay, Florida USA | Wireless Phone Store | 25,000 | 25,000 | 17,945 | 155,638 |
| Dental Related |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-75609090 | *Lender Pre-Qualified* Clay, Florida USA | Dental Lab | 110,000 | 14,500 | 56,892 | 221,697 |
| Electronics/Computer |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-75609047 | Clay, Florida USA | Electronic Equipment Sale | 280,000 | 224,000 | 74,557 | 558,075 |
| Ice Cream/Yogurt/Ice |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74703183 | Clay, Florida USA | Ice Cream Store | 95,000 | 95,000 | 47,567 | 214,490 |
| Liquor Related Biz |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74306286 | Clay, Florida USA | Liquor Bar/Lounge | 660,000 | 660,000 | 58,215 | 293,035 |
| BBF-74703080 | Clay, Florida USA | Liquor Package Store | 125,000 | 125,000 | 52,376 | 330,246 |
| Manufacturing |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-73909279 | Clay, Florida USA | Mfg-Metal Products | 1,700,000 | 1,700,000 | 371,828 | 921,572 |
| Pack/Ship/Postal |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-75512011 | Clay, Florida USA | Postal/Mailbox/Misc | 125,000 | 125,000 | 30,438 | 200,576 |
| Personnel Services |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-72002127 | Clay, Florida USA | Children ID System | 33,500 | 33,500 | 79,030 | 104,000 |
| Recreation |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74703222 | Clay, Florida USA | Billiard Parlor | 142,500 | 71,250 | 0 | 0 |
| Restaurants |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-73909329 | Clay, Florida USA | Mexican Restaurant | 195,000 | 195,000 | 120,861 | 398,000 |
| BBF-74702957 | Clay, Florida USA | Pizza Shop | 115,000 | 80,000 | 0 | 0 |
| BBF-74703159 | Clay, Florida USA | Seafood Restaurant | 140,000 | 140,000 | 94,156 | 361,313 |
47 St. Augustine Area Businesses for Sale
MLS REPORT
| Advertising |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-73909311 | Saint Johns, Florida USA | Advertising Agency | 600,000 | 125,000 | 89,107 | 1,093,557 |
| BBF-74703077 | Saint Johns, Florida USA | Advertising/Promotion | 285,000 | 285,000 | 91,041 | 105,875 |
| Animals/Pets |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-75609097 | Saint Johns, Florida USA | Pet Grooming | 62,000 | 49,600 | 23,297 | 34,191 |
| Beauty/Personal Care |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-73909324 | Saint Johns, Florida USA | Hair Salon | 85,000 | 60,000 | 71,479 | 190,014 |
| BBF-74703121 | Saint Johns, Florida USA | Nail Salon | 55,000 | 55,000 | 37,531 | 65,875 |
| Business Services |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74703045 | Saint Johns, Florida USA | Speciality Services | 285,000 | 285,000 | 91,041 | 105,875 |
| Cards/Gifts/Books |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74703120 | Saint Johns, Florida USA | Cigar Store | 185,000 | 185,000 | 85,237 | 242,157 |
| Cleaning/Clothing |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-73909310 | Saint Johns, Florida USA | Dry Cleaners | 175,000 | 175,000 | 119,234 | 340,616 |
| Cleaning |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74703185 | Saint Johns, Florida USA | Janitorial Service | 140,000 | 50,000 | 69,961 | 197,600 |
| BBF-74703174 | Saint Johns, Florida USA | Water Damage/Restore | 175,000 | 100,000 | 120,000 | 250,000 |
| Clothing |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74703220 | Saint Johns, Florida USA | Clothing Sportswear | 149,000 | 100,000 | 37,976 | 125,344 |
| BBF-75609071 | Saint Johns, Florida USA | Clothing Tee Shirts | 22,000 | 22,000 | 0 | 0 |
| BBF-74703115 | Saint Johns, Florida USA | Clothing Tee Shirts | 89,000 | 89,000 | 61,026 | 215,019 |
| BBF-75351053 | Saint Johns, Florida USA | Clothing Women | 48,500 | 48,500 | 20,960 | 69,664 |
| BBF-74702960 | Saint Johns, Florida USA | Clothing Women | 115,000 | 70,000 | 29,297 | 155,100 |
| Distribution |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74703015 | Saint Johns, Florida USA | Dist-Building Products | 95,000 | 50,000 | 75,562 | 89,140 |
| Fitness |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74703201 | *Lender Pre-Qualified* Saint Johns, Florida USA | Fitness Center | 249,000 | 45,000 | 102,316 | 301,857 |
| BBF-74703100 | Saint Johns, Florida USA | Fitness Health Club | 399,000 | 399,000 | 176,418 | 636,532 |
| Jewelry |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74703146 | Saint Johns, Florida USA | Jewelry Retail | 595,000 | 595,000 | 287,069 | 703,214 |
| Liquor Related Biz |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74703149 | Saint Johns, Florida USA | Bar/Restaurant | 395,000 | 275,000 | 221,711 | 895,478 |
| BBF-74703211 | Saint Johns, Florida USA | Beer/Wine Bar | 100,000 | 100,000 | 0 | 0 |
| BBF-74703044 | Saint Johns, Florida USA | Beer/Wine Bar | 495,000 | 275,000 | 218,922 | 415,877 |
| BBF-74703137 | Saint Johns, Florida USA | Liquor Package Store | 629,000 | 629,000 | 141,537 | 1,108,923 |
| BBF-75609089 | Saint Johns, Florida USA | Sports Bar | 150,000 | 150,000 | 70,046 | 380,000 |
| BBF-74703193 | Saint Johns, Florida USA | Sports Bar | 295,000 | 295,000 | 152,857 | 798,312 |
| BBF-74703224 | Saint Johns, Florida USA | Tavern | 99,000 | 99,000 | 77,089 | 168,000 |
| Medical Related Biz |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74703145 | Saint Johns, Florida USA | Medical Clinic | 249,000 | 249,000 | 76,359 | 135,344 |
| BBF-74703039 | Saint Johns, Florida USA | Medical Equipment | 119,000 | 59,500 | 38,750 | 178,430 |
| BBF-75351040 | Saint Johns, Florida USA | Medical Speech Therapy | 350,000 | 350,000 | 137,000 | 435,000 |
| Photography |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74703058 | Saint Johns, Florida USA | Camera Store | 39,000 | 39,000 | 44,839 | 124,116 |
| Printing/Typesetting |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-75351082 | Saint Johns, Florida USA | Printing Business | 225,000 | 225,000 | 56,328 | 240,000 |
| Real Property Rltd |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74702959 | Saint Johns, Florida USA | Bed & Breakfast | 2,999,000 | 314,650 | 308,211 | 850,433 |
| BBF-74703114 | Saint Johns, Florida USA | Mobile Home Park | 395,000 | 395,000 | 38,000 | 43,800 |
| Rental Business |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74702965 | Saint Johns, Florida USA | Rental Equipment | 125,000 | 125,000 | 79,343 | 145,475 |
| Restaurants |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74703004 | Saint Johns, Florida USA | American Restaurant | 350,000 | 350,000 | 100,193 | 763,632 |
| BBF-74703005 | Saint Johns, Florida USA | American Restaurant | 495,000 | 495,000 | 0 | 0 |
| GABB-18000436 | Saint Johns, Florida USA | Cafe Type Eatery | 109,000 | 109,000 | 0 | 0 |
| BBF-74703156 | Saint Johns, Florida USA | Cafe Type Eatery | 450,000 | 250,000 | 216,735 | 629,690 |
| BBF-74703173 | Saint Johns, Florida USA | Coffee Shop/House | 275,000 | 205,000 | 91,310 | 288,411 |
| BBF-74703131 | Saint Johns, Florida USA | Fast Casual | 395,000 | 395,000 | 204,801 | 1,284,911 |
| BBF-74703195 | Saint Johns, Florida USA | Italian Restaurant | 150,000 | 150,000 | 110,314 | 477,196 |
| BBF-74702920 | Saint Johns, Florida USA | Mexican Restaurant | 195,000 | 150,000 | 161,992 | 350,577 |
| BBF-74703206 | Saint Johns, Florida USA | Pizza Shop | 180,000 | 100,000 | 122,002 | 484,654 |
| BBF-74703053 | Saint Johns, Florida USA | Pizza Shop | 220,000 | 220,000 | 83,895 | 550,000 |
| BBF-75609080 | Saint Johns, Florida USA | Sandwich Shop | 199,000 | 159,200 | 51,999 | 308,814 |
| Retail Miscellaneous |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74703012 | Saint Johns, Florida USA | Retail Fashion Accessories | 84,000 | 84,000 | 49,979 | 111,244 |
| Sports Related Biz |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74703021 | Saint Johns, Florida USA | Golf Cart Sales/Service | 175,000 | 100,000 | 75,500 | 680,000 |
Friday, March 11, 2011
Inventory Prior to Closing
My seller and buyer conducted an inventory last night prior to our closing today and in large part it was a text book case of how to prepare for and conduct an inventory.
The seller had prepared a spreadsheet of all items with the costs from his vendors. Buyer and seller went through each item and agreed on the quantity. Obviously full cases were easy. It came down to a judgment call on partial cases, but they were generally in agreement. A third person entered the quantity and the spreadsheet was already set up to provide a total.
The seller put a label on each item to indicate it had been inventoried.
While it took almost three hours it is a necessary part of the sale of a business. A seller indicates an estimate of the inventory at the time the business is listed for sale, but the exact amount varies day by day.
After the final tally is taken both seller and buyer sign and date a form agreeing to the value and that is forwarded to the closing attorney.
The seller had prepared a spreadsheet of all items with the costs from his vendors. Buyer and seller went through each item and agreed on the quantity. Obviously full cases were easy. It came down to a judgment call on partial cases, but they were generally in agreement. A third person entered the quantity and the spreadsheet was already set up to provide a total.
The seller put a label on each item to indicate it had been inventoried.
While it took almost three hours it is a necessary part of the sale of a business. A seller indicates an estimate of the inventory at the time the business is listed for sale, but the exact amount varies day by day.
After the final tally is taken both seller and buyer sign and date a form agreeing to the value and that is forwarded to the closing attorney.
Thursday, February 24, 2011
Is your Business Broker a member of BBF?
Why is it important for my business broker to be a member
of the Business Brokers of Florida?
· Only members of the Business Brokers of Florida can post listings on the popular BBF Multiple Listing site, which is the primary source members use when searching for a business for a buyer.
· All BBF members cooperate with other member brokers.
· All BBF members will co-broker a transaction with a fellow member.
· Would you list your home with a broker who couldn’t post the listing to the multiple listing service? A non-BBF member can advertise your business in many different ways, but he can’t advertise on the primary site used by most Florida Business Brokers.
· There are more than 800 member brokers. Because we all cooperate the chances of finding the right buyer for a business or the right business for a buyer are multiplied.
Why a business broker may not be a member
of the Business Brokers of Florida:
· The broker may not be a ‘joiner’ and just wishes to go it alone.
· The broker may be more comfortable with residential real estate sales.
· The broker may not be willing to pay the fees required to belong.
· Because of a lack of experience, the broker may not have been accepted for membership. Many apply; not all are chosen.
· Because of past experiences with BBF members; his or her membership application may have been rejected.
Under the laws of the state of Florida, anyone with a real estate license can represent himself as a business broker. This includes agents who focus on residential or commercial real estate. Real estate agents who are not members of the Business Brokers of Florida may have high ethical standards and the best of intentions, but their ability to serve business buyers and sellers is severely hampered because they are not BBF members.
Jon Hunt
Senior Associate
Florida Business Exchange
www.jonhunt.biz
jonhhunt@bellsouth.net
904-823-7225
Wednesday, February 16, 2011
Why pay full price for a franchise?
Should I buy a franchise? Maybe, but weigh all the options and then, if you decide a franchise is right for you, talk to a business broker about buying an existing franchise business instead of starting a new location. Why? You may be able to buy a successful operation for half the cost of starting in a new location.
I’m familiar with one franchise in which the startup cost is $330,000. I have a franchise under contract for $185,000. And it’s very successful with a great track record and the potential to continue growing revenue and profits.
Consider that in starting a new location you have no customers. No customers means no revenue stream. How long will it take you to break even or become profitable and at what level?
When the day comes that you want to sell your business you chance of recovering the full start up cost is slim.
With an operating franchise you know what the revenue stream is. During due diligence you can answer all your questions and learn everything you need to know in order to determine if the business is right for you.
Some of the advantages of a franchise are: Brand name, marketing support, corporate support, buying power and a lower failure rate.
Some of the disadvantages of a franchise are: it’s their way or the highway, royalties on every dollar and if there is a big black eye you’ll feel the pain…think Denny’s.
If you would like assistance in purchasing a successful business please contact me.
Wednesday, February 9, 2011
Beware of Letter concerning Annual Report
I received an official looking letter and form from Compliance Services letting me know of the requirement to file an annual report. The fee is $125. The letter is from Compliance Services, 400 Capital Cir. SE, Tallahassee, Fl.
THIS IS NOT FROM THE STATE OF FLORIDA.
Here is the warning from the official state site:
CONSUMER ALERT! Please be aware that COMPLIANCE SERVICES (not to be confused with the Florida corporation, Compliance Services, Inc.) is mailing notices to business entities requesting that "Annual Minutes" and a fee of $125.00 be sent to them for filing. These notices are NOT from the Dept. of State, Division of Corporations. "Annual Minutes" are NOT required to be filed with any agency. They are to be kept by the business entity itself. Do NOT confuse these notices with the messages sent by the Division of Corporations reminding each business entity to file its 2011 Annual Report.
Friday, February 4, 2011
Avoid Lease Surprises
If you are preparing your business for sale your lease is a key element. Ideally you have a lease with a favorable rate and lots of life left before expiration. But here's a question you may not want to answer. When was the last time you read your lease? In all probability it's been a long time and there may be some unpleasant surprises hidden deep in the lease.
Recently I've had two experiences in dealing with leases that haven't been pleasant.
In the first the seller's lease, which was expiring, had a provision that should he sell the business he would owe the landlord 10 percent of the sales price. The seller knew about about the provision, but he expected the business to be worth a great deal more than he paid and he was willing to accept the provision. Sadly, it was worth a great deal less. A new lease for the buyer ran 32 pages, contained multiple duplications and, initially, required that he maintain property insurance on a building that contained more than a dozen other tenants. We later learned the landlord paid $3,800 to have the lease drafted.
I am now working with a seller and we have the business under contract. He has a great lease, but when I asked when if he was familiar with the provisions of the lease he admitted he hadn't read it since he signed it almost three years ago. I had the duty to inform him that he was required to pay the landlord $1,000 to consider an assignment of the lease and another $2,000 if they approved the transfer.
I don't know that any of these provisions could have been changed when the initial draft of the lease was presented. I do know that if you don't ask, you don't get. Landlords often don't have the upper hand in this business climate and it doesn't hurt to try to negotiate. While the amount of the lease is important there can be other provisions that may have a huge impact when you consider selling your business.
While it may be advisable to have an attorney review a proposed lease there is no substitute for reading it yourself.
Recently I've had two experiences in dealing with leases that haven't been pleasant.
In the first the seller's lease, which was expiring, had a provision that should he sell the business he would owe the landlord 10 percent of the sales price. The seller knew about about the provision, but he expected the business to be worth a great deal more than he paid and he was willing to accept the provision. Sadly, it was worth a great deal less. A new lease for the buyer ran 32 pages, contained multiple duplications and, initially, required that he maintain property insurance on a building that contained more than a dozen other tenants. We later learned the landlord paid $3,800 to have the lease drafted.
I am now working with a seller and we have the business under contract. He has a great lease, but when I asked when if he was familiar with the provisions of the lease he admitted he hadn't read it since he signed it almost three years ago. I had the duty to inform him that he was required to pay the landlord $1,000 to consider an assignment of the lease and another $2,000 if they approved the transfer.
I don't know that any of these provisions could have been changed when the initial draft of the lease was presented. I do know that if you don't ask, you don't get. Landlords often don't have the upper hand in this business climate and it doesn't hurt to try to negotiate. While the amount of the lease is important there can be other provisions that may have a huge impact when you consider selling your business.
While it may be advisable to have an attorney review a proposed lease there is no substitute for reading it yourself.
Thursday, January 27, 2011
Businesses Just Listed for Sale
Jon Hunt
Senior Associate
Florida Business Exchange
www.jonhunt.biz
jonhhunt@bellsouth.net
904 823-7225
SUMMARY
1. Special Events and Catering Facility
2. High Volume Very Profitable Gas Station
3. Medical Imaging Diagnostics
4. Mfg - Plastic Products
BFS-220842: Special Events and Catering Facility
Location: Central Florida
Sales: $1,603,021
Details: This offering includes the sale of an established landmark in Central Florida that has been open and operating in its present location since 1958.
BFS-220852: High Volume Very Profitable Gas Station
Location: Miami
Sales: $2,429,921
Details: High Volume very Profitable Gas Station
BFS-220862: Medical Imaging Diagnostics
Industry: Health Care // Medical Laboratories
Location: Florida (Central)
Sales: Between $1 Million And $2.5 Million ($2,400,000)
Details: The center has endured the tumultuous climate in healthcare through a number of strategic policy decisions. The center has developed a number of proprietary platform technologies that have improved healthcare...
BFS-220868: Mfg - Plastic Products
Location: Florida
Sales: $3,247,919
Details: Injection Molding Corporation. This business has been a major player in the manufacturing of plastic products for over 20 years.
Tuesday, January 18, 2011
20 Businesses Sold in St. Johns in 2010
Sales of businesses were up substantially in St. Johns County in 2010, but declined slightly in Duval County. Overall it was a good year for the sale of businesses in Northeast Florida, according to data compiled from the Business Brokers of Florida. The bulk of the sales were in Duval and St. Johns counties.
Twenty-nine sales were reported by member brokers for Duval County, 20 for St. Johns County, four for Clay County and two for Flagler County. No sales were reported for Nassau or Baker Counties.
Business sales in Duval County totaled $4,557,200. Average sale price was $157,145.
Types of businesses sold covered a wide range, including tax preparation services, medical and physical therapy practices, day care centers, restaurants and bars.
Average revenue per business sold was $385,284. Highest revenue reported for a sold business was $1,325,265.
There were two pure asset sales, in which the businesses had no revenue.
Average owner benefit was $91,282. Owner benefits combine the net profit of the business with depreciation, amortization and business expenses that benefit the owner, such as health insurance or the lease of a vehicle.
Almost half of the businesses sold for their asking price, and that is a good indicator of an improving business climate and evidence the businesses were appropriately priced to attract buyers.
Average time on the market for Duval County businesses was 177 days.
Business sales in St. Johns County totaled $2,346,861. Average sale price was $117,343.
As with Duval County, a wide range of business types were sold.
Average revenue per business sold was $447,602, higher than in Duval County. Highest revenue for a sold business was $1,187,700 and there was only one pure asset sale.
Average owner benefit was $110,198, slightly higher than in Duval County.
Again, almost half of the businesses sold for their asking price.
Average time on the market for St. Johns County businesses was 195 days.
Only four sales of businesses were reported for Clay County. Two of these were lawn care businesses and two were restaurants.
This data does not include sales made between buyers and sellers without the assistance of a business broker.
Across the broad range of businesses sold, it is difficult to glean a lot of information that is useful to a current business owner, but by zeroing in to a specific industry segment, you can learn a lot. If, for instance, we looked at all pizza restaurants sold in Florida in the past year we find 19 sales. Here’s what we can learn.
· Average revenue: $309,522.
· Average sold price: $88,895.
· Average owner benefit: $77,603.
· Sold price as a percentage of revenue: 28.7%.
· Average owner benefit as a percentage of sales: 25.2%.
· Average sold price was 1.15 times the owner benefit.
· Rent as a percentage of revenue averaged 11.4 percent.
· Eight of the pizza businesses sold for their asking price.
· The average sale was for 75.8 percent of the list price.
· Average time on the market was 199 days.
These numbers vary a great deal across industry segments. For any area business owner I’ll be happy to run a customized report on your industry segment at no cost. Simply contact me at jonhhunt@bellsouth.net.
Business Brokers of Florida is the largest organization of its kind in the country, with more than 800 members across the state.
Jon Hunt is a senior associate with Florida Business Exchange. He is based in St. Augustine. He is the former general manager of The St. Augustine Record and retired as a Lieutenant Colonel from the Florida Army National Guard In addition to holding a Florida Real Estate License he has series 6 and 65 investment licenses.
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