Shopping and Fashion

Have you ever asked yourself the question? “Is this a good time to sell my business?” That is a question every entrepreneur asks himself every time he has a bad day. I once received e-mail from the editor of the Auto Body News, asking me the crucial question. “What’s going on the market today? Is this a good time to sell?” Was my quick answer: “These are very interesting times.” Of course, the question in the affirmative will not say anything that you can get your teeth into. So! Let me clarify my answer. Since I store marketer for 10 years I have seen many changes in the body shop industry. One thing that has not changed is that there is always an abundance of both sellers and buyers. The buyers have always been and still are about, what they were looking for choosy. The perfect business in the eyes of the buyers is (A) a that a customer and a revenue source that is reliable and does not depend on the owner will keep it to each customer, and. (B) doing a volume of at least 100,000 U.S. dollars per month, but in reality much more. Large volume sellers think that if they have a DRP (Direct Repair Program,) they want what the body shop buyers. A DRP is to make the insurance companies when setting up a relationship with The Body Shop for all insured body shop business, similar to an HMO in the health insurance. This is what the buyers want, but the DRP contracts are not automatically transferable, and a buyer will be very unhappy if the DRP leaves the buyer after they paid a lot of money for this “reliable revenue.” Smaller volume sellers , on the other side can not be under corporate accounts, dealers or other contracts still hope for much more money for their businesses. The average shop I run across doing only about $ 300,000 – $ 500,000 annual gross income. So what we have is a situation where a lot of buyers looking to buy a business, but there are not many shops on offer to suit you, what interests them, – $ 1,500,000 annual gross income or more. This year a change has occurred. There are fewer shops available than ever before in my career. Do not sell fewer of the large amounts of transactions, which is pretty stable, but fewer of the small mom and pop shops, was not in great demand. The reason I think that has happened is, is due to the booming economy. Low volume shops are doing better than in years. They are making money, and not close enough pressure to feel. You still want out, but when they learn that their 5,000-foot business what they do $ 100,000 in net income is only worth $ 100,000 on the open market they decide to continue to work hard. As always, the business is making $ 1 million to 3 million dollars per year gross income is still in demand. The price alone is still the most important factor in determining when to sell the business. A good example of this is resulting in lower Orange County. Currently, there are a number of shops in Lower Orange County, for the sale, by the owners. They seem to be very profitable but the asking price is too high and the buyers all know it. Also, the fact that these are the only shops available for sale in this prime area has not changed the fact that the buyers pay only the acquisition. Last year I was a high level marketing business in Ventura County. The buyers refused to pay the asking price, although the volume was there. Why? The gain was not. In this situation the buyer would not pay for the size and stability of income, if net profits were there. You did not assume that a profit would be achieved, not when the current owner was. It seems that the buyers of today are very careful. I think they lack confidence in their ability to obtain new business and therefore be too careful. Avoid any confusion about what kind of buyers we speak, can break the buyers into categories. The first category is the consolidators. There are two large, Southern California, but they are not the whole market. I have inquired from the state consolidators that talked about moving in the so-California market. Consolidators shops want to fit their model. The model sometimes changes but basically they will buy a store, if it fits their model. If not, they will not touch. The price does not rotate, turn off their interest on or off. We do not have enough space to discuss what this group wants to buy, in this article. Suffice it to say: “If your business fits their criteria they would have contacted and expressed interest. If they have not contacted are not interested.” Period! They know their market and which is in him. By the way, if I had a business that was owned by the consolidator, I never for sale. As a professional negotiator for 20 years, I find the requested seller financing terms totally unacceptable. If I, what are the terms of the sale, surprised me after the fact, discovered. I had a buyer for the same money or more, without the Seller threatened, but nobody asked me. The second category is the multiple location shop owners. As a rule, with one or more DRP contracts shop that wants to expand in several areas. They are very interested in the square footage of the business, and their ability to over $ 2 million gross per year. This buyer sees only in limited areas. The areas where they have offered a DRP contract. If they are looking for, they need now while the window of opportunity is open to them. If they can not find it quickly, they will not need it at all. Recently I had a multiple shop buyer who had an offer has been made and negotiations on a shop in West Los Angeles. As we end the negotiations, the DRP contract was gone and consistently, as was the buyer. The third category is the buyer who have worked in the industry, but are not our own business. Also in this group that buyers who have family in the industry, money is no problem. These buyers think: “If there is no DRP, forget it. If there is a DRP and is not making much money, forget”. If it has a DRP, and it is making money, they are interested, but only what they consider is a fair price) (in their eyes. This group I have successfully changed their minds as they analyze what they have a good business, and how might they have purchased with transactions “, provides a steady reliable income” rather than trying to design a business with only one DRP to find insurance . The fourth category is the person who only wants a deal. They will do what they have to pay into a store, work for them. This group is the working title of the human body or auto repair shop mechanic. Due to its limited resources, these buyers are paying only what he or she feels the equipment is worth. They are not for business or goodwill to pay, because they believe that the seller is not the clients are stable and can remain when the ownership changes. Are they wrong? In Conclusion: There are many buyers out there. My database has over 250 current names of body shop buyers. There is currently a shortage of shops for sale, but mainly in the proper price range. Most days I feel like a matchmaker with a lot of plain brides and a few beauties. The dowry for the beauties to be paid more than most good-looking boy. The balance of the girl can not pretty, but some of them can cook safely. Who wants to get married? “Have I Got a Girl for You”