Getting Your Money's Worth: The Value of a Shop Greenville NC
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Getting Your Money's Worth: The Value of a Shop
By Larry Edwards "How does a consolidator arrive at the value of a shop?" 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 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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