If you have followed my articles or site for any amount of time, you know that I occasionally like to post recent sales so buyers and sellers are able to see how the market has been, and what their company may be worth. In the past I have only listed the State of Florida because as far as I am aware, it is the only state with an MLS for business sales.
In doing some research on one of the sites I advertise my listings on, I found the ability to search nationwide. Please keep in mind that I have no way to validate these numbers, the are submitted by brokers after the business has sold. I am cautiously optimistic that these figures are close to accurate, and that there is no reason for someone to misrepresent the figures.
I will continue to share these with my readers on a periodic basis, until I am able to find a better format. As you look over these numbers, please keep in mind that we have no way of knowing why the business sold at the price it did, how long it was on the market for, how accurate their sales and income numbers were on a tax return, and what outside factors affected the sale ( ie. illness, death, divorce, etc..). I do not share this so you can have an exact value of what your business is worth. I share it here so you can have a ball park range of where heating and air companies are selling for, and more importantly, if you are considering selling your own company to think about all of the different items that will affect your sales price, such as;
- Where you are located
- Time of year
- Accuracy of books and records
- Are you going to try and sell it on your own or hiring a professional
- If you hire a broker, does he or she know anything about selling heating and air companies
- and on and on
If you look at the sales that have taken place, especially at the higher level you will notice a large discrepancy in multiples, are you doing everything you can so when you are ready to sell it will be at the higher end? If you are not sure what items impact the selling price, or would like to know more, please send me back a note or give me a call. I am happy to confidentially help you to plan for the future in any way that I can.