The Landscape Industry in Florida and the Southeastern states changed drastically in the last 50 years, making the Landscape Contractors an essential business for decades to come…

What Makes a Great Business Presentation and Valuation?

If you are a business owner, you know owning and managing any type of business is not without problems and issues that arise from time to time – problems with customer retention, employee issues, vehicle or equipment issues, regulations restrictions, and the list goes on.

Whether you are seeking to buy a business or sell a business, the business valuation is important to your wallet.  So, what makes a business more valuable?  There are several major and minor factors that are taken into consideration when determining the value and attractiveness of a business acquisition.

MAJOR FACTORS:

  • History and stability of annual sales
  • Type of Sales (Subscription-Based, Long-Term Contracts, Job/Project Based)
  • Quality of Books/Records including Tax Returns
  • NET profit
  • Assets (Trucks/Equipment)
  • Job Description of Owner
  • Customer Concentration
  • Management Team (if applicable)

MINOR FACTORS:

  • Longevity of Employees
  • Longevity of Customers
  • Employee Compensation (W2, 1099 or Cash)
  • Technical Difficulty of Business
  • Type of Licensures Required (if applicable)
  • Location & Service Area of Business
  • Economic Outlook affecting the Industry

In summary, consistency of sales and clean books/records are key factors.  But top deal killers for some buyers that cause them to walk in another direction are as follows:

DEAL KILLERS:

  • Tax Returns are not even close to what is reality
  • Cash payments to employees
  • 1-2 top customers represent a very risky large percentage of sales
  • Large contracts about to expire
  • Trucks/Equipment aged and in desperate need of replacement
  • Owner works 50-60+hrs/week and stressed out
  • Powerful Key Managers with no non-compete agreements

Let’s Work Together

We encourage you to call or email us so that we can work together to review all of the aforementioned points of interest and collectively ensure that we optimize the presentation of your business 6-months or even 1-2yrs in advance of selling.  In some cases, you cannot change some of the above-mentioned negative impactors, but we can help you present the information in the best way possible to attract a qualified buyer.