You are an expert at running your business, but you need an expert to help you navigate the complexities of selling your business. Most business owners are afraid to begin or don’t even understand the analysis process that must take place long before actually putting their business on the market.
f you are considering selling your business in the next few months, next year or even the next decade, you must start preparing.
When positioning your business for sale to attract qualified quality buyers, you need to take an inventory. Not just a physical inventory, this inventory is an in-depth assessment and prioritization of the following factors:
o Your company’s financial health and past performance
o The growth potential of your business
o The non-financial aspects of your business such as capabilities, brand presence, processes and your people
o Ease of transfer-ability of your business to a Buyer
o Detailed current analysis of the markets served and industry sector
o Perception of risk factors and how they are addressed
The financial health of the business is the top factor that affects the sale readiness of your business. This includes detailed, orderly, well kept financial records reflecting consistent revenue/earnings growth. A great financial “story” is critical to the successful sale of your business. We can offer solid advice and suggestions on how to improve your financial story and build business strengths to get your business in prime selling condition.
Here are some elements of a great financial story:
o Normalized financials that show the TRUE earning power of your business
o Highlight results that are better than others in your same industry (gross margins, customer diversity, revenue size, etc.)
o Growth trends (new customers, new markets, etc.)
Do you want to improve the value of your business? Click here for your FREE Value Builder Score!