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

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.

Crystal Enterprises, Inc.
(207) 839-2140
50 College Avenue
Gorham, ME
Business Development Solutions
207-865-4300
7 Maple Avenue
Freeport, ME
Dale Carnegie Training of Maine
207-692-3055
satelite office
Bangor, ME
Interspec Inc
(207) 772-6135
100 Commercial St Ste 417
Portland, ME
Bancroft & Company
(207) 772-6317
15 Monument Sq
Portland, ME
Praxes Group
207-415-9991
PO Box 991
Portland, ME
Ward Green Group
207-947-2731
73 Dunning Blvd
Bangor, ME
Coanda Inc
(207) 541-4703
70 Center St Ste 401A
Portland, ME
Maine Business Brokers
(207) 775-1957
217 Commercial St
Portland, ME
Henderson Pierson Group
(207) 775-7770
477 Congress St
Portland, ME
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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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