Selling your business for maximum value
When it comes to selling your business, you want to get the best possible price for your business. Getting the best price for your company doesn’t happen overnight, it requires some planning.
To get the best possible price for your business, there are five key things that will allow you to sell your business for maximum value.
Timing is everything
If you wait to plan your exit until you no longer care about the company, have little energy to continue managing it, or waiting until you drop dead, the exit will likely result in a poor deal.
Don’t wait until a catastrophic event has occurred to sell your business. To sell your business for maximum value, sell your business when it is doing well.
Get your books in order
Prospective buyers require key information when deciding to purchase a company. Have you been putting personal expenses and non-recurring expenses through your business (such as travel, meals, entertainment, repairs, etc.) These personal and non-recurring expenses make up the company’s true discretionary earnings, and these expenses would need to be added back to the bottom line.
Attracting a buyer
Make your company look attractive to buyers. A large customer-base, solid management team and multiple sources of income will appeal to buyers. Buyers are willing to pay more for stable companies that demonstrate above average employee retention rates and organized employee development programs.
If your business relies heavily on your skills and relationships, the riskier it is to a buyer. Begin transferring your knowledge to key staff members to ensure the business can operate without your presence.
Keep it confidential
Keeping the sale of your business confidential is key to a successful sale. If employees, customers, creditors and suppliers find out your business is up for sale, it may trigger negative reactions. Maintain confidentiality throughout the selling process and control the timing and the way others learn about the sale of your company.
Get some help
Don’t try to sell your business on your own –use a Business Broker. Selling a business is time consuming, so if you’re busy working in your business you won’t have time to sell it. Business brokers can help you:
- Attract buyers
- Screen prospects
- Maintain confidentiality
- Qualify buyers
- Coordinate communications between you and the qualified buyer
- Complete the deal
To read the complete article, click here to visit Inc.com.
Source: Christina Desmarais, Inc.com contributor
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How can Pavilion help?
Pavilion Business Services is here to prepare your business for success and growth in the years leading up to putting the business on the market.
If you’re thinking about selling your business, use the expertise and the range of services provided by Business Brokers. Get the maximum value for your business, contact Pavilion Business Services for a free consultation, click here.
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