Tampa Bay Business Group

This is probably the most asked question from buyers and sellers alike. What is the answer? Is this business worth 2 times the owner benefit? Is it 1.5 times the owner benefit? Possibly 3 times the owner benefit? What about 30, 35, or 40% of the gross revenue? Or maybe 4 months of gross revenue? If you asked 10 different business brokers, you would most likely get 10 different answers and remember, a business broker can only give you an “opinion of value” not and appraisal. Appraisals should only be done by qualified individuals with extensive training to do so. My answer is this…”the business is worth what a ready, willing and able buyer is willing to pay and what the seller is willing to sell it for with no outside influences in a stable market. The valuations given by brokers are simply guides to price the business accordingly to effectuate a sale.  Are there rules of thumb for different businesses? Yes. Are there comparable sales to determine within a narrow range where a business might sell? yes. These are the guides used to determine an asking price for a business. If a buyer finds the perfect business for them, makes the right income to support their lifestyle, is located in the perfect location, and the seller is willing to finance a portion of the sale to give them a “comfort” level, they would most likely pay on the top end or even ignore the “rules of thumb”. On the other hand, if the seller is in financial trouble, or has some other “outside influence” that causes a fire sale to speak, the buyer may try to “steal” the business with a lowball offer and buy it a a lower price. To find out what a business might sell for, call me for a free no obligation consultation or visit my website at http://www.tampabaybizsales.com and request a free comparable sales report on similar sold businesses . Again, comparables will only tell a small part about the value and many other outside factors come into play such as historical performance,  value of assets, leasehold improvements, part an owner plays in the operations, structure of management and employees, location, and one word I cringe to use but plays a big part is potential. After all, would anyone buy a business with no potential to grow? If you are looking to buy or sell a business in the Tampa Bay area, call YOUR Tampa Bay Business Broker at 727 403 9933!! I look forward to assist you with the most important sale of your life!!!