How to Sell Your Florida Garage Door Business for Top Dollar: A Step-by-Step Exit Plan

The Florida market for selling service businesses is strong right now. But that doesn’t mean you’ll automatically get top dollar for your garage door business. Properly preparing for an exit is the key to getting the highest bids.

Below, we’ll explain the process and show you how a few simple changes can immediately boost the value of your Florida garage business in the eyes of buyers. Continue reading to discover how to sell your Florida garage door business for the best possible price.

Why Planning Your Exit Matters

It’s common for service business owners to only seriously consider selling when they’ve reached a certain age or are just physically or mentally burnt out. The problem is, the business probably isn’t optimized for a sale at that point.

Preparing a garage door business for a profitable exit requires approximately 6 to 18 months so that you can fully showcase the hard work you’ve put in over the years. Buyers will want to review every detail before making a decision, and even a few minor weaknesses in your financial or operational presentation can significantly reduce their offers.

Below, we’ll take you through the key steps to optimize your business so that it commands the highest bid possible, regardless of the market.

Step 1: Assess the True Value of Your Garage Door Business

Most local and independent garage door businesses will use a multiple of your Seller’s Discretionary Earnings (SDE) as a baseline valuation. The multiple can vary, but it will generally be somewhere between 2 and 5 times your SDE, depending on the size of your business and free cash flow.

The SDE is your net income, with all benefits, salary, and discretionary spending added back in. The key consideration is what you can justifiably add back in to boost the SDE. If you go too far and try to add back in too many expenses, buyers will spot this as a red flag.

This is why you need time to prepare for a sale, so that you can carefully consider how to present your business in a way that showcases its true value, without trying to bend the rules or giving buyers pause.

Besides your SDE providing a baseline valuation of the business, other factors can add to the value, such as:

• Recurring revenue contracts
• Coverage area
• Equipment and vehicle quality
• Employee stability/low turnover
• Brand reputation and recognition

Step 2: Organize Financials and Operations

While you’ll use your SDE as the baseline of value for your business, you’ll still need to compile your complete financials along with operational documentation.

You’ll need at least three years of financials, and you may need a CPA or professional with experience in small business sales to clean up your books. Depending on the size of your business, you may also need to have these numbers audited.

Documenting your operations is where many owners make the biggest mistake when selling a business. They often overlook this area and fail to realize that buyers with the most capital to spend are just as focused on operations as they are on financials.

Clean operational efficiency means your business can run without you. Systems are in place and documented so that a new owner can resume normal operations as soon as they take over, with no disruptions.

Step 3: Strengthen Your Curb Appeal (Literally and Financially)

Many small details you may not even notice could be a big deal for a potential buyer. Things like excessive wear and tear on vehicles, an outdated website, or offices that appear to need a deep cleaning can all send the wrong signal to buyers regarding the true value of your business.

A little bit goes a long way here, just like when selling a house or large property, sometimes the small details make the biggest difference.

In competitive Florida markets, your online presence is becoming increasingly important to potential buyers. Where you rank in online search results, your business profile, and reviews can all give buyers the peace of mind to pay top dollar, knowing they’re getting a good value.

Financially, you want to focus on quick ways you can optimize your margins.
Garage business owners are notoriously slow at raising prices relative to inflation and the overall market. A simple pricing adjustment can also improve your margins in the crucial year before a business sale.

Step 4: Identify the Right Buyer Type

Identifying the right buyer will help you further fine-tune your selling strategy. In Florida’s current market, you can expect 3 main buyer types.

Individual buyers: These are service workers or local entrepreneurs. They have knowledge of the industry, but usually require more complex deal structures with financing or other considerations.

Strategic buyers: These are other garage door businesses that are looking to expand their territory or contracts. They’re very knowledgeable about the industry and can make for a smoother transaction.

Private equity or financial buyers: Private equity firms are currently buying local service businesses in Florida. These are savvy buyers, and they will pay top dollar for the right garage door business that ticks all the boxes.

Depending on the size of your business, you may attract a specific type of buyer, and you can optimize for what those buyers are looking for.

Step 5: Market Your Garage Door Business Confidentially

This is another overlooked area of an otherwise successful business exit. Selling a service business can mean uncertainty for both employees and customers. You want to be able to control the flow of information so everyone is informed at the right time.

Working with an experienced business broker in Florida allows you to leverage the broker’s contacts and networks to confidently find buyers without telegraphing your plans all over town.

Your broker can also pre-qualify leads to ensure your time isn’t wasted with buyers who don’t have the capital to meet your offer.

Step 6: Negotiate Offers and Deal Structure

Depending on what you’re planning on doing after your exit, you want to consider what deal structures you would be willing to entertain. Different buyers will have different deal structures, but the most common are:

• All cash
• Earnouts
• Seller financing
• Asset sale

Step 7: Prepare for Due Diligence and Closing

After an offer is made, you’ll need to be available so that you can provide any documentation the buyers ask about. This is the final stretch, and being responsive during this phase helps ensure the deal closes without complications.

This is another critical phase where an experienced business broker can make all the difference. Your broker can act as a conduit between you and the seller to help with requests or questions.

Step 8: Plan Your Post-Sale Transition

Even with an all-cash transaction, there will likely be a transition period. You can negotiate this during the sales process to ensure it aligns with your plans and schedule once you sell the business. However, most buyers will want at least a few weeks of transition time where you’re still available for questions or to help with operational changes.

Start Preparing for a Successful Garage Door Business Exit

Experience makes all the difference when installing or repairing a garage door, and selling your garage door business in Florida is no different.

Buehler Business Brokers has years of experience selling local Florida service businesses, and they can help you get top dollar as you plan your next business journey.

Contact Buehler Business Brokers today for a consultation and learn more about preparing your garage door business for a successful exit.