Liquidity Affects Business Valuation A fundamental tenet of the law of supply and demand is that a market-based price is determined by an agreement between a willing buyer and a willing seller. More demand from more buyers raises the market-based price while less demand lowers the price. Business sale transactions also follow this fundamental tenet. … Read more
Increase Your Business Valuation No matter the reason for wanting to sell one’s business, every South Florida business owner wants to maximize their purchase price. If possible, many business owners may increase their valuation by taking long term steps that will result in buyers generally placing a premium on the business valuation. Although these steps … Read more
Selling A Car Wash Car washes represent a very attractive investment for many different types of investors in South Florida. Car wash business owners often also own the underlying land and real estate, which must be valued as an income producing property. A car wash business which rents space should be valued using a multiple … Read more
Liquor Store Sales Liquor stores in South Florida are viewed by many buyers as stable and sound investments. The consumption of alcohol rarely goes out of style, and there are significant barriers of entry to new competitors by virtue of the high cost to open a liquor store and the difficulty in procuring the necessary … Read more
Restaurant Industry In A ‘Buyer’s Market’ It is no secret that the coronavirus was not kind to the restaurant industry. Indeed, approximately 1 out of 6 restaurants closed within six months of the start of the pandemic. Many restaurants have since rebounded, often by emphasizing take-out or delivery. Nevertheless, there is an unusually high level … Read more
Seller-Financing The great majority of business sellers deservedly want and expect to get paid in full at closing. Once a deal closes, the buyer receives the business, and the seller expects to receive the money for the business in return. In reality, however, many business deals are partially seller-financed. This means that the seller receives … Read more
Post-Closing Transition Ensuring a smooth hand-over of a business from the seller to the buyer is critical in a business transaction. Buyers frequently need to be assured that the seller will help the buyer overcome a myriad of transitional issues after the sale occurs. Potential transitional issues after the sale include introducing the buyer to … Read more
What is A ‘Business for Sale’ Advertisement? Unlike typical advertisements for real estate on the MLS or other websites, advertisements for businesses are confidential and do not disclose the actual name or specific location of the business being advertised. They are commonly referred to as ‘blind ads’ because they are confidential advertisements that protect the … Read more
Absentee Owned Businesses in South Florida When it comes time to selling a business, it is very helpful to understand to what degree the business is absentee owned, and how the degree of absenteeism will affect the sales process. A totally absentee owned business is very unique because the owner has managed to create (or … Read more
Selling Auto Repair Shops Auto repair businesses can be very profitable and rewarding for a savvy owner-operator. Most auto repair shops are generally viewed as recession-resistant and fairly insulated from new competition due to restrictive zoning laws. Seen as steady income-producing assets, there are many types of buyers seeking to purchase auto repair companies in … Read more