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

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

Lecg Corp
(602) 241-3300

5130 N Central Ave
Phoenix, AZ

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Cazabba Inc
(602) 200-0067

215 E Lexington Ave
Phoenix, AZ

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Hines Irrigation Consultants
(602) 240-9800

1110 E Missouri Ave Ste 393
Phoenix, AZ

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Business Automation Assoc
(602) 264-9263

4506 N 12th St
Phoenix, AZ

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Altima Business Solutions
480-567-6163

2505 E. Thomas Rd. #9
Phoenix, AZ

Tasa
(602) 248-8464

400 W Camelback Rd Ste 303
Phoenix, AZ

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Pre-Paid Legal Services Inc
623910-3635

Po Box 36865
Phoenix, AZ

Boa Consult Inc
(602) 277-5145

1007 E Missouri Ave
Phoenix, AZ

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REDEV Advisory Group
602-374-7477

3877 N. 7th St. #410
Phoenix, AZ

The Leeman Group
(602) 358-7227

6426 N 29th St Ste 100
Phoenix, AZ

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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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