Typical today is 50 percent each, with a seller financed rate at 7 to 8 percent over five years for the remainder. Stock may also be an alternative to the note. Synergy can be created by increasing individual location revenues, decreasing overhead costs, decreasing taxes, or decreasing capital requirements. You can help increase the value of your operation by identifying and estimating the ways and impact that your operation can have. Specific areas include DRP relations, positioning, the community, etc.
Every operation has some weak spots.
A thorough analysis of your company s financial condition, sales and profitability trends, capital requirements, working capital, and financing needs compared to industry benchmarks can help determine what is a reasonable asking price. Identifying weak spots allows you to determine what steps to take now to improve and maximize value. Buyers are always suspicious about the good things they are told about a company by its owner, expecting him to puff the good and hide the bad. A key area is obviously people. This team in many cases will not include the present owner on more than a short term basis.