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Getting Your Money's Worth: The Value of a Shop Fargo ND

We must first define which type of consolidator you might be dealing with, if we want to know how a consolidator arrives at the value of a shop. Read on to know more about this.

Local Companies

Cnv Service Company Llc
(701) 476-1989

655 1st Ave N
Fargo, ND

Tharaldson Communications Inc
(701) 235-4314

1201 Page Dr S
Fargo, ND

Champ Chris
(701) 239-8620

3203 32nd Ave S
Fargo, ND

Ch Trade
(701) 235-4505

16 Broadway N Ste 202
Fargo, ND

Strategy Sync
(701) 235-3508

417 Main Ave Ste 130
Fargo, ND

Regional Small Business Center
(701) 235-7885

417 Main Ave
Fargo, ND

Small Business Administration
(701) 239-5131

657 2nd Ave N Rm 218
Fargo, ND

Anderson Consulting
(701) 232-2727

4838 Rocking Horse Cir S
Fargo, ND

Fiebiger Swanson West & Co Pllp
(218) 236-8100

115 8th St S Mrhd
Fargo, ND

Sonmar Management Corp
(701) 232-4020

15 Broadway N Ste 401
Fargo, ND

Getting Your Money's Worth: The Value of a Shop

By Larry Edwards
4/1/2000

"How does a consolidator arrive at the value of a shop?"
- Clyde Wilkerson, owner, Wilkerson Body & Frame, Kokomo, Ind.

To answer this question, we must first define which type of consolidator you might be dealing with. Collision shop consolidators generally fall into one of two categories.

The Predator
First, there's the consolidator whose sole purpose in life is to operate collision shops. He generally buys other shops to obtain their customer base and increase his market share. Or he wants to buy your business to secure your location, employees or equipment.

Generally, this kind of consolidator is buying businesses locally or regionally and is targeting shops he believes have weaknesses - for example, owners nearing retirement who want to get out of the business or have poor sales results, disgruntled employees, etc.

These buyers are very familiar with this business and are usually very familiar with your business. You can expect them to offer a price based upon the hard assets the business owns in buildings and equipment, with little or no value placed upon the intangible assets a business possesses - like the customer base you've worked years to build or the excess cash (cash beyond your basic salary) the business provides.

Because these consolidators (predators) sense a weakness, they're simply trying to exploit that perceived weakness. In the last five years, I've only encountered a handful of people who fi...

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