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Table of Contents and Example The 2011 Business Reference Guide, now in its 21st year, is the essential guide to pricing businesses. This year, the entire Guide—756 pages—is devoted to the latest Rules of Thumb and up-to-date pricing information for hundreds of different businesses. Most business entries include:
The Reference Guide also includes:
Thousands of readers call the Business Reference Guide “an absolute necessity— Here’s one Example of a typical business entry to give you an idea of what to expect for hundreds of different businesses (some entries are multi-page): Marinas and Boat Dealers SIC: 4493-06 NAIC: 713930 Approx. 6,000 businesses with this SIC Pricing Rule of Thumb: 10 times EBITDA. Discussion: The price of waterfront land greatly skews the multiples for a marina which are generally 10 or more times EBITA. Another handy rule of thumb is that the slip rental income should cover the debt service which allows the business to earn from other activities at the marina. A marina is usually a conglomerate of several businesses (slip rental, service, sales, gasoline, brokerage, restaurant, etc.) Pricing Tips: Rules of thumb for this type of business are complicated because a marina is a combination of many profit centers; berth rentals, boat services, new and/or used boat sales, restaurant/canteens, and fuel sales. As far as the marina part is concerned the income from the slip rentals must be enough to service the debt. The owner's profit will come from the ancillary businesses mentioned above. Fuel sales can also be a positive factor because the markup (and resulting profit) is usually quite high. Industry Experts’ Ratings: Marketability (1-4)…1.2 (low marketability), Industry Trend (1-4)…1.2 (declining trend), Ease of Replication (1-4)…3.6 (difficult to replicate). Marina businesses are very difficult to start from scratch because of the price of waterfront property and the very difficult permitting process (significant environmental issues). The has caused the price of existing marinas to trend up while profits trend down. Of course, this negatively affects marketability of the business. In some parts of the country developers are buying marinas with the idea of building home condos on the waterfront complete with their own boat slips. The marketing situation for marinas varies by region and whether the marina is on fresh or salt water. Benchmarks: Expenses as a percentage of sales: Cost of Goods Sold (35%), Payroll/Labor (20-25%), Occupancy Costs (35-40$), Profit (10% of Gross Sales)….etc. General Information (provided by several specific business broker's with marina sales experience): 1. Some marinas are sold as leased property i.e., business/marina operations only. Unless the cash flow is good the real value is in the real estate. Be sure to consider the impact of the cost of floor-planning each model year. 2. Beware of a marina selling new boats with a large floor plan. This is a very tough business and typically the only ones making any money are the people flooring the inventory. 3. Be careful if a restaurant is involved. This is an entirely different and sometimes financially dangerous business. It is always better if the restauant is leased to a professional restauanteur. Environmental issues are always at the top of the list of concerns for marinas. Business Advantages: Owner’s lifestyle Business Disadvantages: Low profitability Seller Financing: Typically 20 years Resources: 1. International Marina Institute (imimarina.com)
You won't find a better resource for pricing a business to buy or sell! About the Author 
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