The best time to sell is when a business is doing well so that you will capture the maximum value in the sale. It’s best not to wait until after a business has peaked since the selling price will suffer. Buyers do not buy businesses based on potential and never consider what the sales might have been 5 years ago. Their only concern is how well the business is currently performing.
A company’s value depends on many factors- such as cash flow, asset values, financial history, condition of equipment and premises, favorable lease terms, competition, location, and the economy. By analyzing your business and comparable sales in your industry, your VR Intermediary can advise you on the proper pricing strategy for your business. For larger businesses we recommend a third party valuation. Buyers are much more likely to pay top dollar for a business when documented evidence supports the asking price. Most financial institutions insist on a business valuation before they will consider financing.
Most owners find that the frustration, expense and time involved do not yield cost savings and many end up working with unqualified buyers. In fact, because they do not have access to a large number of qualified buyers, many owners end up selling their business for much less than they could have received by working with a well-established Intermediary. Plus, owners find it difficult to work directly with buyers while maintaining confidentiality. Selling a business is a specialized trade. Seek professional assistance when it comes to selling an asset as valuable as your business.
Sellers benefit in various ways. The more significant benefits include: the ability to spend their time managing their business during the selling process, thereby keeping their net profit up and maintaining the maximum sales price; the ability to maintain confidentiality about the sale therefore not alarming client bases, employees and suppliers, or giving a market advantage to a competitor; and step-by-step assistance through the selling process.
Whom you choose to sell your business could affect the way you live the rest of your life. Select a trained professional who specializes in the sales of businesses only.
- Are you a full-time business Intermediary?
- Do you work from home or from an office?
- What type of training have you received?
- How do you value my business?
- Do you expose my business to a network of other full-time professionals that are willing to show the opportunity to their qualified buyers?
- What type of national and international exposure does my business receive?
- What is your success rate of selling correctly priced businesses?
It is our job to orchestrate process of selling and help you achieve your goal.
Please contact us with any questions and or need of assistance.