Let's Share

Orlando Business Brokers Market Update

As Orlando business brokers, we want to provide an update and some insight for people currently looking to buy or sell a business in the Central Florida area.

As of today, according to the Business Brokers of Florida (BBF), there are currently 447 businesses for sale in the Central Florida area.  This counts the counties closest to the City of Orlando  including Orange County, Seminole County, Osceola County and Lake County.

Out of the 447 Orlando businesses for sale, only 34 of the businesses are currently under contract. Obviously, this is an extremely low ratio of businesses for sale verses the amount of businesses that are under contract for purchase.

Even more startling for some, in 2011 less than 10% of all businesses for sale in the State of Florida actually sold according to the BBF.

Is this due to the Great Recession?  Are business buyers weary about purchasing a business?  Has the profile of Orlando business buyers changed?

Most Orlando business brokers would say yes to all three of the above questions, but they know there is a deeper problem and it has nothing to do with the amount of business buyers out there.

Currently, there are plenty of buyers looking to purchase a business in the Metro Orlando area.  Here at Boss Group International, we have over 2,000 potential buyers in our in-house database looking to buy a business in the Central Florida area.  This does not even consider the amount of buyers that other Orlando business brokers have for sale.

As you can see, the amount of buyers is not the problem.  This has not much to do with the recession, it’s an ongoing problem dating back prior to the recession.  Nor does it have to do with just Orlando.   Nationally, in any given year, the average amount of businesses that sell is 20% according to the  Business Brokerage Press.

So why don’t more of the businesses on the market actually sell?  How can we solve this problem?

The solution is actually very simple.  The Sellers of businesses need to price their businesses at reasonable asking prices.  Just as important, the businesses need to be priced correctly from day one to prevent a business from going “stale”.

Most businesses for sale are over priced, plain and simple.  Sellers tend to believe that their business is worth more than it really is.  It is understandable since they have invested money and time to build the business.  For many owners their small business is their pride and joy like a child is to a parent.

Just like it’s common for parents to believe that their child is smarter and more athletic than they actually are,  owners believe there business is worth more than it really is.

Business owners looking to sell their business need to take a step back and look at the market comparables of businesses that actually sold that their business broker is presenting them. Sellers need to listen to the professional advice of there business broker.

As Orlando business brokers (as well as business brokers across the country), we all need to do our part by doing a better job of explaining the realities of proper pricing to potential Sellers.

The businesses that are priced correctly tend to sell at a much greater percentage than poorly priced businesses.  If you are a Seller who is serious about selling, price the business correctly and do so from the day you list it.  Follow the strategies of pricing a business and you will not only greatly increase the chances of selling your business, but you are more likely to get a higher sales price.

Buyers, when you find a business that you like which is priced correctly, jump on it.  With so many quality buyers and so few businesses priced correctly you will need to move quickly in order to have the opportunity to acquire it.

 

Jim Parker

Orlando Business Broker

Lic. Real Estate Broker

 

 

 

Jim Parker

James Parker
President/Business Broker
Lic. Real Estate Broker

Dear Fellow Entrepreneur or Aspiring Business Owner:

On behalf of everyone at Boss Group International, I would like to thank you for visiting us. We have provided a wealth of information on our website so you can better understand the process of buying or selling a Florida business.

 

You may want to see what businesses are currently for sale in Florida. We have provided you a direct link to the database of businesses for sale that professional Florida business brokers use to search for their buyers. Please take a look at this incredible database.

 

If you are interested in buying or selling a Florida business, contact us today so we can discuss the possibilities. As professional Florida business brokers, our conversation will remain confidential.

 

  Orlando: 1 407 329 3273 Jacksonville: 1 904 484 0150
  Tampa: 1 813 438 7934 Canada: 1 613 777 9800
  Sarasota: 1 941 421 0464    
  Miami: 1 786 472 3872