Posted:  17 Mar 2016 23:32
Registered User Currently Offline Join Date: Aug 2015	Posts:  5 Reputation: Unranked User Rank: 1 - Seedling
There is much discussion about the "value" of a business.  There are so many factors that play into this-not just number of accounts or gross income for the year or month.  As a person that has sold and purchased I know that what part of the country you are in is important: Is it a growth community or a recession community?  Are the accounts long term?  Do they have a lease that automatically renews each year?  How long has the business had these accounts?  What is the "good will" of the company?  Do they have a good reputation?  What is the owners "take home" pay? Do they have a professional business evaluation done or are they just asking a price based on what THEY think it is worth?

Posted:  18 Mar 2016 15:21
Registered User Currently Offline Join Date: Jan 2011	Posts:  798 Reputation:  43 User Rank: 10 - Blossom
All true.  However, most prospective business buyers are either already operating or at least living and working in the industry in the area where the target business operates, so they already probably have some level of familiarity and understanding of that market and therefore the value of an interiorscape business there.  They believe that purchasing the accounts of a going concern in that market is the fastest, most efficient way to expand their client base and revenue stream, and so they may be willing to "over-pay" for accounts in their home area for the convenience and familiarity factor.  As with other business decisions, one hopes the prospective buyer knows their true costs of doing business, and that includes the true costs of acquiring existing accounts.  One hopes.

Interiorscape.com is sponsored by NewPro Containers     RSS 2.0     Atom 1.0

Welcome to our Interiorscape forum for Interiorscapers, Vendors, Suppliers, Florists, Interior Designers, Special Event Planners, Educators and Students!