One key point often overlooked, however, is buyers are looking at growth across all lines of business and in total number of customers. Even if revenue is increasing, buyers are leery if one line of business shows decline or your customer base is static or decreasing. Well-run businesses also have relatively low levels of receivables over 90 days, so take a careful look at how well you are actually being paid for the services you provide. Also note that a significant number of pre-paid accounts can lead to an adjustment in the purchase price. An astute buyer will compare your costs to industry averages - by both service type and individual employee.
Labor is the single most expensive part of doing business in our industry.
If your costs are out of line compared to industry standards, a buyer will want to know why. Revenue by route. Again, a careful buyer will look closely at how much revenue each route produces each month. Protection per employee is a key factor in the business's value. They'll also carefully review your pricing of accounts and ask about contracts with pricing guarantees.