Is this A Good Time To Sell Your Body Shop Business?

Have you ever asked yourself the question? “Is this a good time to sell my business?” That is a question every business owner asks himself, every time he has a bad day. I once received e-mail from the editor of the Auto Body News, asking me that key question. “What is happening in the market today? Is this a good time to sell? ” My quick answer was “These are very interesting times.”

Of course that answer doesn’t tell you anything that you can get your teeth into. So! Let me clarify my answer. Since I have been selling body shops for nearly 5 years, I have seen many changes in the body shop industry. One thing that hasn’t changed is that there have always been an abundance of both sellers and buyers. The buyers have always been, and still are picky about what they were looking for.

The perfect shop in the eyes to the buyers is (A) one that has a customer base and a revenue stream that is reliable and isn’t dependent on the owner being there to retain each individual customer, and. (B) doing a volume of at least $100,000 per month, but really much more. Large volume sellers think that if they have a DRP (Direct Repair Program. This is where the insurance companies set up a relationship with the body shop to do all their clients business. Much like an HMO in health insurance) contract, they have what the buyers want.

This may be true but the contracts are not automatically transferable, and a buyer will be very unhappy if the DRP leaves after paying money for this “reliable revenue stream.” Smaller volume sellers, on the other-hand, not having corporate accounts, dealerships or other contracts still have hopes of getting lot of money for their shops. The average shop I run across is only doing about $300,000-$500,000 annual gross income. So what we have is a situation where a lot of buyers are looking to buy a shop, but there are not a lot of shops available, that fit what they are interested in.

This year, one change has occurred. There are fewer shops available than at any time in my career. Not fewer of the large volume shops for sale, that is fairly stable, but fewer of the small mom and pop repair shops that have not been in heavy demand. The reason, I believe this has happened is because of the booming economy. Low volume shops are doing better than they have in years. They are making money, and do not feel as much pressure to close down. They still would like to get out, but when they find out that their 5,000 sq. foot shop which is making them a $100,000 net profit, is only worth $100,000 on the open market they decide to keep on working.

As always, the shops doing $1 Million to $3 Million per year gross income is still in demand. The price alone still is the main factor, in determining if these shops will sell. A good example of this is what is happening in lower Orange County. There are currently a couple of shops in Lower Orange County that are for sale, by the owners. They appear to be very profitable but the asking price is too high and the buyers all know it. Even the fact that these are the only shops available for sale in this prime area has not changed the fact that buyers just refuse to over pay.

Last year I was marketing a high volume shop, in Ventura County. The buyers refused to pay the asking price, even though the volume was there. Why? The profit wasn’t. In this situation, the buyers would not pay for the volume and stability of income unless the net profits were there. They didn’t assume that they would make a profit where the current owner was not. It appears that buyers of today are very careful. I believe they do not trust their own ability to get business and are too careful.

To clear up any confusion about what kind of buyers we are talking about, lets break the buyers up into categories. The first category is the consolidators. There are two large ones in Southern California but they are not the whole market. I have talked to out of state consolidators that have inquired about moving in to the So California market. Consolidators want shops that fit their model. That model sometimes changes but basically they will buy a shop if it fits their model.

If it doesn’t, they will not touch it. The price by itself doesn’t turn their interest on or off. We do not have enough space to discuss what this group will buy, in this article. It is enough to say, ” If your shop fits their criteria they would have contacted you and expressed interest. If they haven’t contacted you, they are not interested.” Period! They know their market place and who is in it.

By the way, if I owned a shop that a consolidator wanted, I would never sell to them. Being a professional negotiator for 20 years, I find the requested seller financing terms totally unacceptable. When I have found out about these sales, after the fact, I am amazed. I had buyers for the same money, or more, without the seller being at risk, but no one asked me.

The second category is the multiple location shop owners. Usually with one or more DRP contracts shop that wants to expand into more areas. They are very interested in the sq. footage of the shop, and its ability to handle over $2. Million Gross Income per year. This buyer only looks in limited areas. The areas being where they have been offered a DRP contract. When they are looking, they need it now, while the window of opportunity is open to them. If they can’t find it quick, they will not need it at all. Recently I had a multiple shop buyer who had made an offer and was negotiating a shop in West Los Angeles. By the time we finished the negotiations, the DRP contract was gone and so was the buyer.

The third category is the buyers who have worked in the industry before, but do not currently own a shop. Also in this group are the buyers who have family in the industry, and money is no problem. This buyer believes ” If it doesn’t have a DRP, forget it. If it has a DRP and isn’t making much money, also forget it”. If it has a DRP, and it is making money, they are interested but only at what they consider is a fair price (In their eyes). This group I have successfully changed their mind at how they analyze what a good shop looks like and on occasion have bought shops with “a steady reliable income”, other than insurance contracts.

The fourth category is the person that just wants a shop. They will do what they have to, to afford a shop that will work for them. This group is the working body man or auto repair shop mechanic. Because of their limited funds, this buyer will only pay what he or she feels the equipment is worth. They will pay nothing for goodwill because they believe that the seller’s customers are not stable and will leave when the ownership changes. Are they wrong?

In Conclusion: There are a lot of buyers out there. My database has over 250 current names of body shop buyers. There is currently a shortage of shops for sale but mostly in the properly priced category. Most days I feel like a marriage broker with a lot of plain brides and a few beauties. The dowry for the beauties is more than most good-looking boys will pay. The balance of the girls may not be pretty, but some of them can sure cook. . Anyone want to get married? “Have I got a girl for you”

Flax Seed Is A Busy Body and Budget-Conscious Must-Have

Keeping fit and healthy in this day and age is becoming more of a luxury. A luxury of time for people who are always on the go and who ca not seem to find the occasion to prepare nutritious, home-cooked meals. Moreover, it is an indispensable luxury especially for the regular wage earner whose income can barely afford the price of garden fresh foods and health supplements to instead settle for microwaveable meals. So how does a typical American keep healthy despite all these everyday constraints?

If you think processed food is remarkably healthy, then most likely you are buying into empty promises of nutrition. In fact, much of the nutrients fortified into processed food items are lost in the course of refining and processing. Furthermore, these products are packed with preservatives, so beware of the related health risks. Now if you have been regularly taking synthetic vitamins and supplements, be informed that the concept of complete nutrition is not likely in this instance since the body cannot effectively utilize the vitamin contained in the pill, with its compound being isolated from a set of micronutrients typical from the natural source.

In the end, natural, whole foods remain as the top source for essential micronutrients that the body can directly absorb and utilize for its various biochemical functions. Nothing beats the regular consumption of garden fresh food and farm products. But was not it mentioned earlier that these are not only costly but also time consuming in terms of preparation? Yes indeed! But there is an easily available natural source packed with all the right nutrients that will not even hurt a tightened budget. That is the willowy flax seed.

Get it whole or milled, the flax seed is an affordable, natural supplement that provides the essential nutrients important to our diet. On top of its nutritional components are Essential Fatty Acids or EFAs – particularly Omega 3, that aid in the various functions of the body. EFAs assist in the formation of strong muscles, in hormonal excretion, with brain development, and in the upkeep of immune functions. Likewise, Omega 3 regulates metabolism, blood pressure, and sugar levels to prevent the onset of cardiovascular diseases as well as keep the body energized and full of stamina. Moreover, flax seed is packed with soluble fiber to aid in digestive functions, and lignans that are known to inhibit the growth of tumor and cancer cells.

So if you can not afford the regular purchase of whole foods or are too busy to be bothered by its preparations, then why not buy cold-milled flax seed and sprinkle it over meals and beverages today. flax seed

is the nutritional ally for both busy-bodies and budget conscious consumers.

How Online Bookkeeping Services Are Helpful for Small Business

The World Economic Forum Meeting (WEF), 2016, was a complete head-turner. Expertise industrial personalities, economists and many other eminent personals present there incepted the theme of Fourth Industrial Revolution around the globe. It illustrated an essential fact, i.e. updated technology is going to change our way of living, work strategies and interaction module.

Small Business Heads – Get Updated

How the labour market and many of the other corporate segments is going to sway the global economic policies also got conveyed at the meeting. In this respect, the brilliant role of tech trends, that helps in accounts management and bookkeeping got revealed too. The concept of “on-demand everything” also got an excellent grant at this event. Now, here lays a crucial idea behind, which needs to be considered by the entrepreneurs and business-heads of small business. This is to be advanced with the beneficial aspects of small business bookkeeping services online, for well-planned functionality of entities.

Some essential factors that vitalize this sort of services are:

  • Earlier a server would cost a hell, but new-age cloud accounting system comes with a free Google Drive.
  • Comes with no office rentals or charges.
  • Ability to fetch free managerial guidance.
  • No hazards of paper, prints or file management.

But Don’t Mix Accounting & Bookkeeping

Small business heads has to undergo a huge number of tasks. As a result of which, accounts or bookkeeping responsibilities seems to be a tedious responsibility. But it can’t be left ignored, either. At this juncture even an efficient business person would suggest the proficient performing assistance of online accounting and bookkeeping services. However, there is a significant difference between:

Accounts Management: It vitally manages the presentation, preparation and also the representation of statutory returns. Legal advisories in respect of financial status of entities can also be fetched with its assistance. Basic guidance to proceed with excellence gets served with it. How to make a proper utilization of the business capital available is one of the most significant roles too.

Bookkeeping Traits: More than half of the responsible financial management system gets finely aided with bookkeeping services, available online. A bookkeeper, in this respect, can also aid clients with the usage perspectives of software being used. High-end inventory controlling can also be gained with them. Even the retail business bodies can be assisted with POS (point of sale), i.e. maintenance of daily monetary transactions. Research, planning, execution of plan and hence moving-forwards is the strategic work process of these bookkeepers.

How & Why of Upgraded Online Bookkeeping for Small Business

100% cloud based accounting and bookkeeping services is truly appreciable for its professional outlook and functionality. Removing all the hassles and obstacles, it got finely designed to serve the clients with accuracy and safety too. Time-driven performance of the software like Xero must also be considered here. Best part is, these online service providers allots the supreme beneficence of accounting and bookkeeping, combined all-together. Hence, some notable advantageous facets that must be stated, goes like:

  • It can be of supreme help from the initial phase only. Like, from the stage of company formation.
  • Automatic bank reconciliation to creation of smart reports gets perfectly maintained with the strategic cash flow management by them.
  • Invoicing, payment, pay-runs and mobile-apps linked within, also helps in updating the clients with every minute details of financial transactions.
  • Managing the tactical legal issues and strategic planning for meeting with the desirable financial goals also gets well served.

Why Not Opt For The Best?

Now, internet and updated technology is a diversified domain. No wonder, it is embedded with a widened variety of accounting and bookkeeping services too. But to be connected with the service suppliers associated with Xero bookkeepers, is comparatively gainful. Here are some attributes that has made it possible:

  • It aptly works as a data flow rather than a data entry.
  • Total control by the small business clients has increased it beneficence too.
  • 24/7 Login facility to go-through the financial transactions.
  • Accuracy at its best.
  • Safe, secured, confidential and protective modes of financial management.
  • Cost, time and energy beneficial.

Smooth running of a business firm is only possible if cash flow and financial accounts management gets finely executed. This is highly significant for the entrepreneurs of small business process. Saving time, energy and completely cost efficient assistance in this respect are the online accounting and bookkeeping services. From the software being used to functional qualities, everything has made it a laudable subject in the (WEF) too.