A Boat Dealer or Marine Supply business is a traditional business model, usually common between families. It’s a store that provides marine supplies such as boats, equipment, brokerage service, etc.
As these kind of businesses surround families throughout many years, it can be considered old and also traditional, so you can imagine how much it is worth, not only financially speaking but also sentimentally.
So if you want to sell it, how can you set a price for such an important business? Even if the boat-dealer-marine-supply is not in your family for years, how can you determine what it is worth?
Take a look to the following tips and find out how to sell your business for maximum value.
What is your Boat business worth?
As we already said, Marine Suppliers tend to be old businesses, so there are lots of financial data to be gathered. But don’t worry if your business has passed through generations, you won’t have to compile all files, just from the past three to five years is enough.
Then, get to know where your business is located. Potential buyers will be very interested in how seasonality affects your business, how competition works around the store and what is the exact demand.
Furthermore, there are a couple of questions you must be able to answer before setting your boat-dealer-marine-supply price.
- What are the sales?
- What is the profit?
- What are the growth trends?
- What is driving new sales and is that sustainable?
- What channels do new customers come from and what is the breakdown of each channel?
- What is your market position?
- Is your Location favorable?
- How reliant is the business on the owner?
- What systems and processes are in place to run the business?
What makes a Boat business worth more?
If your business is a tradition in your family, for sure it has a sentimental value for you. You may put it into account as well, but don’t forget on the differentials that make every business worth more. What are they?
In order to answer that, you need to know exactly where are your customers from. Do you put products into sell only in a physical store or you have a website as well? In that case, do you deliver orders to other cities or only for locally buyers?
What about your profit? Is your business getting bigger or is it stable? Do you have any legal concerns? Are the business documents shipshape?
What does the average Boat business sell for?
There has been few Boat Dealer or Marine Supply businesses sold in the past 10 years, yet because actually there isn’t that much to be sold. But as you can see, if you own the business and want to profit from it sale, it’s likely you get a great deal of money, as the average sale price is $411,482 and the most frequent deal size is up to $450,000.
The average multiple is also a very interesting value that deserves our attention. As it’s 2.45, that means the asking price usually is two and a half times bigger than the business gross income.
And even though there were only 54 sales in ten years, the total transaction value is up to $22 million, which shows how expensive a boat-dealer-marine-supply can be.
What is the most frequent deal size?
The most frequent deal size is the commonly asked price, and in the case of Boat Dealer or Marine Supply is $450,000, a little bit higher than its average sales price.
And as there are very few stores being sold, it’s hard to determinate a price pattern. In the last five years, however, there has been businesses sold either for less than $250k or for more than $2 million. It really depends on its size and on what the business owners have to offer in advantage.
Is the Boat Dealer market getting bigger?
The Boat Dealer or Marine Supply business is very profitable. There’s almost not been a year that the total transaction value didn’t pass $1 million mark.
So it’s possible to understand that if you want to sell your business, you’ll be probably get a great deal of money from it, regardless any economic or financial situation.
Only in 2013 there was a millionaire sale, but the most common deals are usually below $250k, or it tops $500k. Not that bad for someone looking to sell their business.
Are bigger businesses worth more?
Generally the answer is yes, but as there has been so few Boat Dealer or Marine Supply sales it is hard to say. But take a look at the multiple rates from the last years.
In 2015, an owner who sold his business for less than $250k probably had more profit than the one who sold for more than $250k and less than $500k. Apparently there hasn’t been any sales between $500k and $2 million, but when it comes to deals size up to these, the profit was great.
What states have the most business deals?
State of Connecticut is the best state to sell a boat-dealer-marine-supply business by far.
Washington and California may also be good states to make a deal, but not as much as CT.
Of course you’d not even open a business like this in a state that doesn’t have access to the sea or a great lake, so don’t even try to make a deal with someone from Kansas for instance.
Why would you sell in the first place?
The reason to sell always varies from each person. Maybe you are looking for new challenges, businesses and opportunities, or you just want to enjoy your family and retire. Although it can seem tempting to get your hard worked cash, make sure that you are clear on the motives so you don’t regret afterwards.
How long will it take to sell your Boat business?
If you have read all the necessary steps to understand your valuation, and think you have focused on all the topics that make your company worth more, it is maybe time to start the process. Selling your business is a long-term process, and doesn’t happen overnight. Usually companies sell in 12 months, but you can also see deals getting closed in 6 to 9 months depending on the opportunity.
What is the process of selling your business?
This step by step process will help you get less confused when you make sure you are ready and confident to let go of your business, and perform a nice and positive sell. Many entrepreneurs forget about a step, or just don’t have the right guidance to know all the stages necessary and get lost through the process. Don’t forget to go through all of these, and if you have any questions, comment at the end of the article or contact us for more help.
Who will buy your business?
If you are wondering about the buyers that can be interested in your Boat-Dealer-Marine-Supply, don’t worry, there are many options and possibilities. From First Time entrepreneurs, to businessmen interested in new opportunities, the chances are that in the marine-supply industry it may likely be a person who already had a store in the field.
The boat dealer business is a very niche market, so deals usually happen in states that have access to the sea. And as it is a very traditional business model, with a lot of families running the same business for decades, it can also be very expensive to buy.
So the best thing you can do is to compile as much information as you can and provide potential buyers with all the data he needed to make the deal.
If you want to start accelerating your buyout process, fill out our free valuation form and get your business valued today! Leave your comments on any doubts or feedback, we are glad to hear your thoughts!