AboutCarlos Jaramillo Expertise I am certified Business Broker. I can help any questions that business owners may have relating to the sale of their business, or I can help answer any question relating to the purchase of a privately held business/company. I can help with due-diligence questions, Purchase Agreements, Letters of Intent, and all general questions relating to this subject matter.
Experience I am a certified Business Broker with over 5 years expertise. Our firm, Murphy Business, is one of the largest and most successful Business Brokerage houses in the Country. We average over 300 businesses sold annually. Our clients range from small grocery stores, to large manufacturing companies. Annual revenue for these companies will typically range from $250,000 to $15,000,000.
Organizations Murphy Business & Financial Corp.
National Equipment and Business Builders Institute
Society of Business Annalists
Business Brokers Network
International Business Brokers Association
Georgia Association of Business Brokers
Business Brokers of Florida
Georgia Hispanic Chamber
Education/Credentials B.S.- International Business (EAFIT)
B.S.- Economics (University of Texas)
CMEA - Machinery and Equipment Appraiser (NEBB)
Real Estate Agent - Georgia RE Commission
Real Estate Agent - Florida RE Commission
Awards and Honors 2003 New Business Broker of the Year (Murphy Business)
2006 Million Dollar Club Award (Murphy)
2006 Million Dollar Plus Award (BBF)
Question If a person is selling a property management buisness (rental change overs, swimming pool cleaning, gardening etc.) with no assets, i.e. selling there client list.(goodwill) Is there a value structure that can be used to evaluate a fair price to pay.
Answer Rae,
Absolutely! What a buyer will pay for are the historical earnings in 2007, 2008, and 2009 times an industry adjusted multiple. There are several variables you must determine first, i.e. how likely will the revenue reoccur? is the seller the only employee or are there property managers in place, what your earnings like? are you a big company or a small one, and so on.
Typically you will need to figure out what you Seller's Discretionary Earnings (SDE) are for the years that I told you average them out and in your industry you can multiply that number by 1 to 3 depending on how you answered all those questions.
