Successful business sales need a lot of effort and strategy. On the path to making a sale, there are factors to consider in order to set yourself and your business up for the best possible sell. Let’s explore a few ways to do so:
1. Future Potential
The potential for future growth is one of the top reasons why firms are bought and why prices are set at a premium. People don’t buy the history of a company. Instead, they buy the company’s future.
If you want to sell your business, it is crucial to have a business plan showing how the business will be in three years of new ownership.
In detail, the business plan needs to reveal the appearance of the company when the new business owner offers the services or products of their new company to their clients. You also need to indicate the appearance of the business upon injection of new investment, cost savings, synergies, energy, and enthusiasm by the new owner.
2. Bidder Competition
One factor that impacts the ability of successful business sales is bidder competition. Having an option of purchasers or forming a market is one of the most crucial steps when you want to sell your business. In addition to finding a choice of buyers, you need to find buyers who are financially strong and strategically motivated.
As the Mid-South’s largest business brokerage, we have a backlog of buyers and investors looking to purchase businesses. We market your business confidentially to thousands of potential buyers and work with you throughout the process to find the perfect buyers for you.
For the best results, you need to get in touch with multiple buyers to influence your sale. Failure to address this factor will lead to a poor deal for you. Bidder competition influences various essential areas, such as the speed of the deal, the price achieved, and the terms of the deal.
3. Motives vs. Multiples
If owners of organizations were to request their accountants to value their companies, there is a high likelihood that the valuation would be based on the firm’s historical profitability. However, the value of an organization is driven more by the buyer’s motive and less by multiples of profit.
Companies have various motives for buying a company. We want to know if it’s important to you to understand the buyers’ motives. If so, we work to find a buyer who is a great fit for you.
4. Relationships
Along with a backlog of parties who are actively looking to acquire businesses, our brokerage team works to build relationships with other business owners, investors, and corporate entities. Many times, a potential buyer may not be “active” but will jump at the right opportunity.
These relationships with both active and passive buyers put us in position to know what they might be looking for and why. If your business fits that profile, then you already have a huge advantage over any competition — and we know it.
Securing The Future For You & Your Business
With the right strategies, and the assistance of a knowledgeable broker, you can profit and preserve the future of the business you’ve worked so hard to grow, and you can secure its future prosperity.
The first step to selling your business is to understand its value. Click here to get a free & confidential opinion of value. Or contact one of our brokers today.
Our only business is selling your business confidentially.