Buying a flooring and tile company in South Florida

• A mix of homeowners, designers, remodelers and builders, with no single builder dominating.
• A showroom or designer relationships that bring in better-paying retail work, where the company earns on both material and installation.
• Installers who have worked with the company for years, with documented insurance. Good tile setters are hard to find, and customers judge the company by their work.
• Accurate measuring and ordering, so jobs don't stall waiting for a missing box of tile.
• Good prices and terms from suppliers, and little stock that won't sell.
• Few callbacks for cracked tile, lifting floors or countertop seams.
• For countertop shops, well-kept equipment and skilled templaters and fabricators.
• Clear written estimates and change orders, so customers know what they're paying for.

• Revenue by type of work (showroom retail, remodelers, builders, insurance restoration) and the largest customers' shares.
• Margins on each, since builder work at a fixed price per square foot can be thin.
• Inventory: what's on hand, how old it is, and special-order stock nobody picked up.
• Customer deposits on open jobs, and whether the materials have already been bought.
• Installers: employees or subcontractors, how they're paid, and proof of insurance.
• Callbacks, warranty claims and disputes with builders over failed work.
• For countertop shops: equipment condition, dust controls and any OSHA inspections.
• Showroom lease terms, and whether the landlord must approve a sale.
• Supplier and distributor agreements, and whether exclusive product lines would carry over to a new owner.

• How does your work split between showroom customers, builders, remodelers and insurance jobs?
• Who are your installers, and how long have they worked with you?
• Who are your main suppliers, and are any terms tied to you personally?
• What happens when a customer's tile cracks or a floor lifts a year later?
• How much inventory do you carry, and how much is slow-moving?
• Who measures, estimates and sells when you're not there?
• When you cut stone for countertops, how do you keep the dust down?

South Florida covers Miami-Dade, Broward, Palm Beach and Monroe counties: Miami, Hialeah, Doral, Fort Lauderdale, Hollywood, Pompano Beach, West Palm Beach, Boca Raton, Jupiter, and the Florida Keys down to Key West. It's the state's largest metro area and its most international. PortMiami, Port Everglades and Miami International Airport tie the region to Latin America and the Caribbean, which supports a deep base of wholesalers, freight forwarders and logistics firms, many of them near the airport. Tourism and cruises, finance and wealth management, health care, real estate and construction carry much of the rest. Palm Beach County adds wealthy seasonal residents and, out west near Lake Okeechobee, sugarcane and vegetable farms. In the Keys, nearly everything turns on visitors, fishing and boating.

Companies that serve homes, condo buildings and other businesses do well here: the building trades, property services, insurance agencies, medical and dental practices, and professional firms.

Costs run high: commercial rent, wages and, above all, property and windstorm insurance. Price the insurance before you make an offer, not after. Miami-Dade and Broward make up the Florida Building Code's High-Velocity Hurricane Zone, with stricter rules for roofs, windows and structures. That raises building costs, and it also gives steady work to the contractors who know those rules well.

Much of the workforce and many customers speak Spanish as well as English, and a company that works well in both languages has an edge. The winter season matters more in Palm Beach County and the Keys than in Miami. In the Keys, the cost of housing makes hiring and keeping staff one of the hardest parts of running a company. Ask any seller there how they find workers and where those workers live.