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Tips on selling business with good gross but not making a profit

Florist with great reputation, busy, but management can't seem to find a way to make a profit. Flower shops are very labor indusive and carry alot of inventory as far as supplies, hard goods,future holiday merchandise from the wire services(FTD, Teleflora, -800-Flowers) Is there any way to sell this business by being upfront with the lack of profit? Looking for wording for my listing and some feed back.

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Answers (2)
Salvatore B. Urso
Florida Business Acquisitions, Co.

Your comments about "management can't seem to find a way to make profit" stuck out w/ me. If your business is not being run by the owner/operator, I bet there are inefficiencies in your overhead and key margins. I would study the overhead, margins, etc to see if you are losing money somewhere. If that is the case, your argument could be that an "owner/operator" may be able to rectify or mitigate your excess expenses. If you have more questions you can call me at 813-421-5001. I'd be glad to give you advice.

Aug 11, 2009
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The BAF Group LLC

We routinely do not deal with Florist's shops in particular, unless they are making a huge profit. Aside form the wire services, the local supermarkets normally have flowers for daily purchase - even 7-11 has roses, from time to time. So, unless it is an established, large operation, I would not list it: Getting to a point of profit is an incredible climb! What do you have to sell? If I were a Buyer, why would I not just rent a space and start one of my own, rather than buying someone else's operation at a premium, with no profit?

The only other way I would play this is to list it for a three-month period, and contact every other florist's shop in the area. If they could take this shop's clientele and rid themselves of the Seller's overhead, then it might make some sense.

Aug 11, 2009