Before a St. Augustine buyer sees your numbers
- Three years of tax returns that match your profit and loss statements
- A list of owner perks and one time costs to add back
- Your lease terms, including how many years remain
- A note on how much revenue depends on the tourist season
- The names of the people who run things when you are away
Two Kinds of Local Business
St. Augustine was founded in 1565 and is the seat of St. Johns County. The historic district draws visitors all year, which supports restaurants, inns, tour operators, galleries and retail shops.
The county around it has grown quickly, with new neighborhoods spreading toward Jacksonville. That growth feeds a different set of companies: home services, contractors, landscapers, pool care, medical and dental practices, and schools.
If you own a company tied to visitors, a buyer will study your seasons. If you serve new homeowners, a buyer will study your recurring work and how long customers stay with you.
Who Tends to Buy Here
Many buyers already live in St. Johns County or just moved here and want to own something rather than commute. Others are Jacksonville operators who want to add a southern territory to a company they already run.
Larger companies, those with a real management team and steady earnings, can draw interest from buyers much farther away, including investor groups. Smaller ones usually sell to a nearby owner operator, often with an SBA loan.
How Seasonality Changes the Price
A buyer pays for proven earnings, not for a strong spring. If your best months carry the year, expect questions about cash in the slow months and how you cover payroll then.
Monthly sales for three years, side by side, answer most of those questions before they are asked. Steady results through the sale process matter too. A dip during the sale makes buyers nervous, and so does a sudden spike.
Our business appraisal page explains how a value range is worked out from earnings and what tends to push a multiple up or down.
Leases in the Historic District
Downtown space is limited and landlords know it. A buyer will want enough years on your lease to repay the purchase, so a short term or an expiring option can hold up a deal.
If you own the building, decide early whether you will sell it, keep it and collect rent, or sell it separately. Buyers underwrite at market rent, so a sweetheart rate you pay yourself does not help your price.
Florida Steps at Closing
Florida has no personal income tax, so owners of S corporations and LLCs pay federal tax on the gain but no state income tax. A C corporation pays Florida corporate income tax and files a final return.
Buyers of a Florida business can be held for the seller's unpaid state taxes, so most hold back money until you deliver a clearance from the Department of Revenue. Read about successor tax liability before you sign a letter of intent.
Service companies serving the new neighborhoods, such as pool service companies, have their own checklist of routes, contracts and equipment.
For a private value range on your St. Augustine company, use the short form on this page or call (904) 555-0129.