Choose the best time to sell your business
Have you ever wondered? “Is this the right time to sell my company?” This is a question every entrepreneur asks, whenever you have a bad day. After receiving the news editor e-mail Auto Body key questions. “What is happening in the market today? And ‘this is the right time to sell? My answer was quick “I’m very interesting.
Course, the answer does not tell you anything you can get the tooth. So! Let me clarify my answer. Since I’m selling body shops for 10 years, I have seen many changes in the body of the sector. One thing has not changed is that there were still many buyers and sellers. Buyers have been and are very demanding of what they wanted.
The store is ideal for buyers is (a) that has a customer base and revenue stream that is reliable and does not depend on whether the owner must maintain all customers, Y. (B) is a volume of at least $ 100,000 per month, but in reality much more. High volume sellers think they have a DRP (Direct Repair Program), with what you want buyers to The Body Shop. The PRA is the case of insurance companies to establish a relationship with the store to make purchases across the company provided, as an HMO in the insurance sector.
This may be what you are looking for, but contracts are not automatically transferable DRP, and a buyer will be very unhappy if the DRP allows the purchaser, after paying a lot of money for this stream of “reliable income. Low-volume sellers not the opposite, that the accounts of companies, brokers or other contracts still hoping to get a lot of money for their shops. The average shop meeting with about $ 300,000 – $ 500,000 gross annual income. So what we have is a situation where a large number of buyers looking to buy a tent, but there are plenty of stores available that match what they are interested in gross receipts $ 1,500,000 or more per year.
This year, the change occurred. There are few shops available at no time during my career. The shops did not lower sales volumes, which is fairly stable, but unless the mother of small repairs and pop that have not been in high demand. The reason why I think what has happened is due to the economic boom. With lower sales volumes are better than they have in recent years. They make money, and do not feel much pressure to close. I wanted more, but when they discover that their store of 5,000 square meters, which makes a net profit of $ 100,000, only 100,000 $ on the free market, have decided to continue working.
As always, the shops do $ 1 to 3 million per year in gross income is always required. The price is still the main factor to determine whether these items are sold. A good example is what happens in the lower Orange County. There are few shops in Lower Orange County are on sale by owners. They seem to be very profitable, but the price is too high and buyers all know. The fact that both stores are available for sale in this important area has not changed the fact that customers simply refuse to pay more.
Last year I was in a shop in marketing high-volume in Ventura County. The buyers refused to pay the price, even if the volume was there. Why? The delivery did not. In this situation, the buyers will not pay for the size and stability of income unless the net income was. They would not get an advantage that the current owner has not. It seems that buyers have become very cautious. I do not think trust their ability to obtain new and are never too prudent.
To dispel any confusion about the type of customers we speak, allows buyers to break into categories. The first category is the coach. There are two major Southern California, but not the entire market. I spoke with the editors state that have asked to go to contract specifications in California. Consolidators are looking for stores that meet their size. This model, but in reality, sometimes the changes are going to buy in a store, if you enter the model.
Otherwise, do not touch. The award itself does not enable or disable your interest. We do not have enough space to discuss what this group is to buy, in this article. Suffice to say, “If your store meets the criteria of having contacts and interests expressed. If you have not contacted, are not affected.” Period “They know their market and that is in him.
Incidentally, if I owned a shop that wanted a consolidator, I never sold. Being a professional for 20 years, I believe that the seller has requested financing terms totally unacceptable. When I discovered that the conditions of the sale is after the fact, I was surprised. I have had buyers for the same money, or more, but the seller is in danger, but nobody asked me.
The second category is the position of owners of different stores. Usually, one or more contracts with store DRP, which wants to expand in others. I am very interested in the area of the store, and its ability to handle more than 2 million dollars per year in gross income. This buyer is not only in limited areas. The regions in which it was offered a DRP contract. During the search, they need now while the window of opportunity is open to them. If you can not fast, do not need any. I recently had a buyer who had made an offer more shops and was negotiating a store in West Los Angeles. At the conclusion of negotiations, the DRP contract was gone and, therefore, was the buyer.
The third category of buyers who have worked in before, but now the owner of the shop. Also in this group are the buyers who have relatives in the industry, money is no object. This buyer believes that “if you do not have a DRP, forget it. If you have a DRP, and does not earn much, they forget. If you have a DRP, and making money, are only interested in what they consider a price equitable (in your eyes). This group, I managed to change my mind about how to analyze what looks like a good store, and sometimes bought shops with “a steady reliable income” instead of groped to find a shop with the insurance contract DRP only.
The fourth category is the person who just wants a shop. Will do what is necessary to allow a shop that works for them. This group is the man who works the body in the garage or automotive repair. Due to lack of funds, this buyer will only pay what he or she feels the team is worth. They pay nothing for goodwill because they believe that customers of the seller are stable and leave when the change of ownership. Were wrong?
In Conclusion: There are many buyers in the market. My database has over 250 current names of the purchasers of the Body Shop. Currently, there is a shortage of tents for sale, but mainly in the category appropriate price. Most days I feel like a marriage broker, with a large number of girlfriends unique and rare beauties. The gift of beauty is better than most guys will pay. The remaining girls can not be beautiful, but some of them can cook. Anyone who wants to marry? “I have a girl for you”
Related posts:
- How to start a small business on eBay Are you interested in using eBay to buy the products...
- Internet business for several individual are clueless When it comes to starting up a internet business several...
- How to start a profitable home-based business These days, it is increasingly difficult to make ends meet...
- How to Start a Business Online The first thing to know is that not all Internet...
- Steps to create an online business The first step in creating an online business is research...
I am an entrepreneur from Indonesia. Husband of Camira Iriani and father of faizhia Shiva akmanda. Known as founder of 
I’ve seen a lot of DIY auto body workr and I’m sorry to report that 80% of them need to be redone. And redo’s are more expensive than the repair would have been from the beginning because so much needs to be corrected. But if you are really detailedabout your steps and use your local auto body supply store for tech support, you can deliver great results on the first shot.
Do you have a “top posters” page to reward your best blog comments?