Boon or Bust: Hurricanes Continue to Affect Florida Businesses for Sale

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Florida business broker Acquisition Experts, LLC reveals why those interested in selling or buying a Florida business need to carefully analyze whether hurricanes continue to impact business value and future earnings.


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While Florida has made it through the beginning of the 2007 hurricane season without a storm of significance, the effect of past hurricanes persists. In his article titled "Hurricanes Affect the Value of Florida Businesses," Ken Elkin, co-owner of Acquisition Experts, LLC advises current or potential Florida business owners to beware of the possible "hurricane effect" on both a company's recent financial performance and how it may impact future business.

"While there are gray areas in the valuation of any business, we find that certain South Florida businesses for sale continue to be acutely affected by hurricanes and that the effect is often undetected, ignored or improperly weighted, which can lead to greatly skewed business valuations," says Elkin.

For many Florida companies, hurricanes are very good for business. Certain industries experienced significant earnings increase over the past three years and since most businesses are valued using a multiple of earnings formula, every dollar of these "non-recurring" hurricane earnings will correspond to a 2-3 times increase or decrease in company value.

The hurricanes have permanently impacted some industries and, in some cases, dramatically altered the marketplace. Some businesses may have better long-term prospects than others. It is easy to see how a business buyer or seller could end up in hot water if they fail to fully consider the effect hurricanes continue to have on the Florida business community.

This situation requires awareness of the impact and sound analysis of the business as discussed further in the article.

About Acquisition Experts:
Located in Stuart, Florida, Acquisition Experts, LLC a South Florida business broker helps value Florida businesses by taking the "hurricane effect" into account, and structures acquisitions that are fair to both buyer and seller. Ken Elkin is an experienced business broker and co-owner.

Ken Elkin, co-owner
Acquisition Experts, LLC.
969 S.E. Federal Highway, Suite 300
Stuart, Florida 34994
Phone (772) 220-4455


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