I Want To Sell My Business For Maximum Value!
Updated: Aug 20, 2019
Every major decision by a business owner requires careful thought and preparation. What is a bigger decision there than opting to sell your business?
There are lots of things you need to take into consideration, and many steps to prepare.
Here are TOP 5 TIPs to consider, in preparation for selling your business to achieve maximum value:
Sell The Business, Not yourself
Buyers will want to see strong supporting management team, this shows that the business can be successful long after you departure. How do you test this? Well, take a holiday for a month, can the business run on its own? A buyer should be buying your business and not you. You need to demonstrate that the business can flourish without you so that you can exit.
Future Cash Flow
To most buyers, you are selling the future and future cash flows. Have a realistic and supportable forecast. If you can provide potential buyers with forecasts that are reasonable, believable and achievable this can further demonstrate the value of your business.
Sell The Dream
When speaking to prospective buyers, take the opportunity to clearly articulate your growth story and help them understand the vision and goals you’ve set for the business. Describing the companies culture can be key to help buyers understand what the future of the business could look like.
Before you sell, you need to start thinking about ways to maximise profitability. Starting these initiatives during the sales process means you may have missed your best opportunity to enhance value. Focus on achieving those operational efficiencies, cost reductions and other value enhancers in advance so they are easily demonstrated to buyers.
This is more than just a concept for managing your stock portfolio. An attractive business has a broad customer base with little customer concentration. Some customer concentration may be an unavoidable reality for many businesses. Having signed contracts with customers and being on approved bid lists provides potential buyers with confidence that customers will be retained with the business even after the sale.
CLICK HERE and speak to us in confidence today for more information about how we can help you with your business sale.