Michael Shea

Central Florida's #1 Business Broker

Why Your CPA Can’t Value Your Business: The Florida Insider’s Guide

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Why Your CPA Can’t Value Your Business: The Florida Insider’s Guide

If you’re looking to sell or buy a business in Florida, you might be tempted to call your CPA for a valuation. But according to Michael Shea of Transworld Business Advisors, that might be your first mistake.

In his latest deep dive, Michael explains why Florida is a unique “ecosystem” for business sales and what really drives the price when the ink hits the paper. Here are the 5 key takeaways you need to know.

1. Florida’s Secret Weapon: The BBF MLS

Florida is the only market in the country where business brokers consistently cooperate through an internal system called the Business Brokers of Florida (BBF) 00:22 Opens in a new window . This database tracks decades of sold “comps” (comparable sales), giving brokers access to real-world data that public sites like BizBuySell simply don’t have.

2. Discretionary Earnings vs. EBITDA

While corporate America and Private Equity groups love to talk about EBITDA, Florida’s “Main Street” businesses are valued on SDE (Seller’s Discretionary Earnings) 01:24 Opens in a new window .

  • Why? Most Florida buyers are owner-operators, not passive investors. They care about the total “basket of goods” the business provides—including their own salary and benefits 02:07 Opens in a new window .

3. Multiples Are Not Static

A common myth is that every industry has a “set” multiple (e.g., “all restaurants sell for 2x”). Michael demonstrates that multiples flow based on cash flow, desirability, and bankability 06:00 Opens in a new window .

  • A maid service with $36k in cash flow might only see a 1.5x multiple, while one with $150k in cash flow could easily command 2.2x or higher 08:52 Opens in a new window .

4. Geography and “Apple-to-Apple” Comps

You cannot value a business in Orlando by looking at a similar one in Sarasota 04:53 Opens in a new window . Market dynamics change by county. To get an accurate price, you need a broker who can filter data by:

  • Specific County

  • Tax Return availability

  • SDE parameters

5. The “Tax Mitigation” Trap

If you want to maximize your sales price, you need clean books. Michael notes that only about 20% of listings have clean tax returns 03:49 Opens in a new window .

  • The Reality: Sellers who work with their accountants to keep “clean” records—even while performing legitimate tax mitigation—will always command a higher sales price and attract more serious buyers 11:13 Opens in a new window .

Bottom Line: If you want to know what your business is worth, don’t guess based on national averages. Look at the local Florida comps.

Need a Valuation? You can reach Michael Shea at Mike@tworld.com  or visit www.yourfloridabusinessbroker.com  for more insights.

Michael Shea represents the Tampa Florida Transworld office. In business since 2005, he has established a reputation as a trusted business broker across Florida’s key markets- from Tampa to Orlando, Melbourne, and more. Over the past two decades, Michael and his team have closed over $1 Billion in sold business volume and presided over more than 450 transactions. His credentials include the IBBA Certified Business Intermediary®, and most recently, the prestigious Certified Exit Planning Advisor® (CEPA) credential. He is also a Florida Licensed Real Estate Broker and Business Brokers of Florida Board Certified Intermediary