Service Businesses in Florida
A service business primarily provides skills or specialized services to its customers, whereas a retail business primarily sells tangible products to its customers. Service businesses generally have no need to carry products or inventory and often do not need a retail location (with high occupancy costs). Some service businesses (such as beauty salons) may also sell retail products, but are still considered service-oriented businesses. Driven by the strong level of tourism, aging population, and high growth, service-oriented businesses in the healthcare, home services, and beauty industries all make excellent investments for business buyers. Let’s explore several different types of service-oriented businesses in South Florida and why they may make sound investments for buyers of businesses.
Healthcare Businesses in South Florida
- By the year 2030, nearly one-third of the population in Florida will be aged 60 and older, making seniors the fastest growing demographic group.
- For this reason alone, many buyers are interested in purchasing healthcare companies in Florida.
- Examples of good healthcare companies to purchase include home healthcare companies, nurse registries, physical therapy center clinics, medical staffing businesses, and veterinarian offices.
- Medical practitioners such as physicians or dentists also sell their practices, but buyers of such practices typically are physicians or dentists themselves.
- There is always demand for quality healthcare whether the economy goes into recession or not.
- The growing healthcare demand from a growing senior population in Florida makes healthcare companies excellent service businesses to purchase.
- Buyers should beware, however, that regulatory and licensing issues need to be addressed when purchasing most healthcare companies.
- It is always best to seek the help of a legal professional in these instances.
HVAC Businesses in Florida
Heating, Ventilation, and Air Condition (HVAC) companies are primarily service businesses that also may sell products (such as new air conditioning units). After all, nobody will buy an A/C unit from a company that can not install it properly and service the unit for many years to come. The major advantage of HVAC companies is its recession resistant nature. People need (rather than want) air conditioning in South Florida. Members of the public will also not frequent commercial establishments without proper air conditioning. Normally, buyers of HVAC companies are familiar with HVAC repair and have a Florida HVAC license. It is possible, however, that an unlicensed buyer may still buy an HVAC company and have the business qualified by a licensed HVAC professional.
Plumbing Businesses in Florida
Like HVAC companies, plumbing companies service critical needs for its customers. It is quite unsafe and unsanitary to have one’s bathroom or kitchen fixtures not in working order. Many plumbing companies also are hired by general contractors for major remodeling or new residential construction jobs. Along with regular service calls, these remodeling and construction jobs can make a plumbing business very lucrative. Many buyers of plumbing companies may be fearful that the seller could (after the sale) steal their customers or compete with their business by opening another plumbing company. For this reason, the non-compete agreement is of critical importance to protect the buyer and ensure the seller is aware of what is not permitted after the sale.
Pest Control Businesses in Florida
Pest control companies generally sell at very high valuations and are highly sought after. In South Florida, the prevalence of insects and rodents makes pest control companies a much needed service by many residents and commercial establishments. The cost of chemicals and treatment items are generally quite low compared to the price paid by the customer. This means the margins for the pest control company are usually very high. Many pest control company owner-operators pay themselves an owner’s salary which is generally considered to be part of the adjusted owner benefit, when determining its valuation.
Landscape/Pool Business in Florida
- In South Florida, landscaping and pool companies are two of the most common service businesses.
- The hot and humid weather prompts many homeowners to have a pool.
- Because of the same hot and humid weather, many homeowners do not want to perform their own landscaping.
- Both landscaping and pool companies have service routes whereby the customer receives regular maintenance and in return pay a fixed monthly service fee.
- The recurring monthly payments provides security for many buyers as future sales and profits have a high degree of certainty.
- Typically the most critical part of selling landscape or pool companies (including pool builders) is providing a smooth transition so that the customers will continue service with the buyer after the sale.
- A professional business broker will help the transition by ensuring that a well thought out transition plan is implemented and agreed upon before the sale.
Beauty Salons in Florida
Many types of beauty salons, hair salons, and nail spas exist in South Florida to service a broad array of customers. The salon industry is generally considered recession-resistant business because well…women (and men!) always want to look their best. Most salons are owner-operated where the owner actively works in the salon as a stylist. A buyer of a salon must separate the income generated by the owner from the income generated by the employees (or independent contractors). The valuation of the salon ultimately depends on keeping the customer base (and sales levels) intact after the sale.
A professional business broker should be able to steer a qualified buyer towards the purchase of a solid service-related business in South Florida.
Give Martin at Five Star Business Brokers of Palm Beach County a call today for a FREE evaluation of your business needs.