BUSINESS MIAMI FLORIDA (BMF) (754) 777 2548 or (786) 663 4840

Six key variables to account for when assessing the worth of your business.

Six key variables to account for when assessing the worth of your business.
There are six key variables to account for when assessing the worth of your business.

The customers

Who they are and why do they deal with this company?
Do one or two customers make up the lion’s share of turnover?
Will they continue to do business with a new owner?
Are they contracted in?
Is there a good spread of clients?
Do they pay on time?

The suppliers

Are there any contracts in place? Are they transferable?
When do they need to be paid?
Are they a reliable source for supply?
Are there any alternative suppliers in this field?

The product or service

Is it immune to cheap foreign imports?
Are there barriers to entry?
Does it have a point of difference?
Is it a ‘sunrise’ or ‘sunset’ business?
If a service, what is the availability of future staff?
Is there an incidence of technology change/innovation with products?

The plant

Is the plant and equipment up to date?
Is there new technology on the horizon?
What needs replacing?
What is the level of capacity utilisation?
What is the real value, opposed to the book value?
Is there is a maintenance programme in place?

The premises

Can the premises accommodate growth?
Can the lease be reassigned?
Can the lease term be extended? Is it at market rates?
Do the premises require repair, maintenance or reinstatement?
How appropriate is the location for the business?

Profitability

Are profits showing year on year growth?
Is EBIT at a satisfactory level showing an acceptable return on investment?
Have you a record of all significant distortions of profits over the last three years?
Are personal and discretionary expenses recorded so that ‘true profits’ can be calculated?
Is the profit level sustainable?

Laurent Isorez is an expert in buying and selling businesses of all sizes in Miami, Florida including: Downtown Miami, Miami Beach, Coral Gables, North Miami, Fort Lauderdale, Boca Raton etc…) Laurent has brokered millions of dollars in business sales across a variety of industries including restaurants, hotels, bars and nightclubs, franchises, gas stations, retail shops, coffee shops and deli’s and more...

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