We have multiple potential buyers who are seeking the following business sale opportunities: IT, medical (including physicians, clinics, physical therapy, etc.), HVAC, and electrical. If you have any clients interested in potentially selling their companies at peak sale, we would appreciate your referral. Thanks for your consideration.

The year 2023 was a great year for us at Rich-Biz Brokers & Advisors, LLC. With three companies already under a Letter of Intent this year (2024) all at asking price, we’re looking forward to another banner year for our clients. With that in mind, we want to share with you the top three “hot buttons” that create a peak business sale.

1. Company Financial Reports:

   Savvy buyers will analyze company financial reports with the proverbial “fine tooth comb.” Company records of all kinds, but especially financial reports, must be accurate, up-to-date, and readily available. When buyers ask for financial records, they begin questioning if those records aren’t immediately available. However, it’s not just the company’s financials that lead to a peak sale. It’s the financial records combined with the STORY of the company which must be told in an appealing way. While that story has multiple components, the following building blocks are among the most important.

    

2. Leadership and Management:

   Leadership and management are two different processes. The focus of leadership (provided both by the owner and the Management/Leadership Team) is to provide direction for the company and drive that direction to the goals. The function of theLeadership/Management Team is to implement the vision of the company through processes and procedures, policies and systems, and supervisory oversight and direction. A savvy buyer will want to see a clear direction for the company and competent management of that direction to the company’s goals.

    

3. Flight Risks:

   Clientele/customers and personnel are the life-blood of a thriving company. These two components are what creates the profitability, income for employees, and the probability of future sustainability of the company. When clientele/customers and personnel are faithful to the company rather than to the owner, the probability of a peak sale is enhanced. A savvy buyer will question if there are any flight risks, how the owner knows what they are, and how any flight risk can be avoided and/or planned for.

While there are many other factors that create a peak business sale, weakness in any of these three factors can diminish the potential of a peak sale. However, there are often ways to mitigate any weaknesses in any factors leading to a peak sale. Contact us at wayne@richbizbrokers or RBennett@richbizbrokers.com for additional information, your comments, or assistance with a peak business sale.

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