[Brent Deines]

While that may be true for some businesses, unfortunately it is not quite that simple for most, and not at all true for a small service business like windshield repair. For instance, a company that has a gross sales of $100,000 but has no physical inventory and has lost money every year is not going to be worth $100,000. In fact, it may be worth nothing at all.

I have had several businesses appraised and the physical assets typically make up the majority of the value, then the profitability and how much the owner takes home are considered. The "accounts" are what you typically only get paid pennies on the dollar for, and that is about all you really have to sell with a windshield repair business. That's why I think it makes sense to buy an existing windshield repair business if it is properly valued.

I got about 30% off my annual gross sales for my glass replacement business when I sold it, and that included a vehicle, computer, furniture, and a lot more tools and equipment than a windshield repair business would typically include.

Personally when looking for a business to buy I look at the profit more than anything else. If there is enough profit to make the monthly payments for 10 years and still provide a reasonable profit, it is a business worth looking at. If you have a lot of money and don't need the income you may look at a business a bit differently, but most of us in the windshield repair industry need to see some profit to make a business purchase worthwhile.

The other thing I look at is how important the seller is to the business. Will I lose 1/2 the accounts the minute he walks out the door, or will I be able to maintain these accounts for an extended period of time? If you aren't sure, you need to be very careful.