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Digg It - 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, everytime 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
According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product
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 h
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 h
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.
Examples of combination products may in
Examples of combination products may in
ve 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 s
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 s
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
ellers 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
This may be true but the contracts are not automatically transferable, and a buyer will be very unhappy if
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
he 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
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
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
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
ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc
eavy 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 wort
easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi
h $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 Orang
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 Orang
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
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 ref
Last year I was marketing a high volume shop, in Ventura County. The buyers ref
and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ
used 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
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
rust 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 inquire
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 inquire
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.
Following aspects would a
Following aspects would a
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
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
dd to the challenges in developing combination products:
Which markets to tap where the combination products can do fairly well?
Which combination prod
Which markets to tap where the combination products can do fairly well?
Which combination prod
. 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 fin
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 fin
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
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 a
The second category is the multiple location shop owners. Usually with one or more DRP contracts shop that wants to expand into more a
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
reas. 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 no
t?
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
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 hav
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 hav
ping new procedures for reviewing their safety, efficacy and quality.
Professional from academic institutions, pharmaceutical industries, health care indust
Professional from academic institutions, pharmaceutical industries, health care indust
e 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 ana
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
yze 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, t
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, t
.
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
his 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 s
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 s
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.
Companies that provide selfless information through particip
Companies that provide selfless information through particip
ortage 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
tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
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