We’re seeking business sellers who are looking for help. Our most successful clients typically have annual revenues ranging from $3 million to $35 million; well-ordered books; a management team in place; and documented operating procedures. However, we’re also happy to serve any of your clients or business owners you know who may need help achieving these ideals.

So, you may be thinking about selling your business. If so, here are a few factors which you may need to consider in order to get a peak value sale.

1. Have Realistic Expectations: Most business owners tend to think that their company is the best on the market and, therefore, want to get top dollar out of the sale. However, the value of your business is “in the eye of the beholder”. While some potential buyers will agree with the value if it is calculated correctly, many others will not. If your business is priced at the value you perceive, rather than the fair market value determined by the financials and other factors, the result will be frustration for you and for potential buyers, many of whom may leave the “negotiating table” because they don’t think the price is realistic!

2. Have Your Business Valued Correctly: A proper calculation of the value of your business by a third-party professional will help you to achieve the realistic expectations expressed above. By having an objective business value or a value range based on the financial health and operational prowess of the company, your business becomes an attractive, marketable entity. This asking price should reflect the optimum sale price that the market will bear and/or provide a range of the possibilities where the actual sale price may land.

3. Your “House” Must Be In Order: Your business should not be dependent upon your being present. If a leadership/management team is in place, a prospective buyer can be assured that he/she will have ample time to get to know the company before making changes, if changes are needed. Books and records must be verifiable and up-to-date, including compliance accuracy for Human Resources, Employee Benefits, and other regulatory items. Profitability and sustainability of operations is crucial. A prospective buyer will want to be assured that he/she will have a successful Return On Investment. Systems should be in place to ensure consistent, efficient, effective company operations.

4. Curb Appeal: It’s more than just the numbers. Most people don’t want an unkempt environment. Your company must project the image of a highly marketable business. Take a moment and check the appearance of your business: Does the internal environment reflect the pride that you should have in your business? Is the external presence of your company appealing and attractive to anyone who might visit or just pass by? These factors are important to the ultimate sales value or your company.

Although there are many other factors that should be considered in preparing for a peak value sale, these four recommendations will go a long way toward assuring that you may “Get What You Want When You Sell.” For additional conversation about these suggestions and others, please contact us at Wayne@richbizbrokers or RBennett@richbizbrokers.com

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