Absentee Based businesses offer certain advantages that owner-operated business do not. In this video, Vested Business Brokers owner and CEO, Nathan Goldstein discusses some of the advantages of the absentee based business and why these advantages appeal to the entrepreneurial business buyer…
This is Nathan Goldstein of Vested Business Brokers, we help people buy and sell privately held businesses. Today I’m going to explain why an absentee based business would trade at a higher multiple than a non absentee based business.
Well, if you are an entrepreneur who wants to own multiple business and you find an absentee based business, you could continue to operate your other businesses. Most of our clients are owner operators where they will come in, run the business and they will scale the business themselves. But from time to time, here at Vested, we do get absentee owned businesses.
There are some specific categories of businesses that are easier to run absentee than others. Gas stations, car washes, Laundromats, sometimes liquor stores depending on the size of the liquor store, can easily be run on an absentee based business. Those businesses will trade at a higher multiple.
Think of this when you think about absentee based businesses, think of the pleasure of sitting down in a lounge chair on a sunny beach somewhere. Maybe not if you are in the Northeast but if you are in Florida. Then at the end of the week there is money deposited into your bank account. You go to the deposit and you are able to get your paycheck because your absentee based business covered it. That is an unbelievable feeling. I hope you experience that feeling, have a cold tropical drink on me.
Are you an entrepreneur who is interested in owning an absentee based business? If you are then call us today at (877) 735-5224 to see what kind absentee businesses for sale we have in our huge and growing database.
One of our experienced business brokers will work with you personally to help you find a great absentee business which will put profits in your pocket while you sit on the beach, play golf, travel the world, etc.