After investing years of hard work running your business, you’ll want to be sure you receive top-dollar when it comes time to sell. Whether you’re looking to retire or are interested in other endeavors, there are many options you can employ to improve your business and receive higher offers from interested buyers. To help increase the value of your business, follow these six steps.
Choosing to list your business for sale is no small decision. Once you’ve figured out how to tell your employees and clients you’re planning to sell, you’ll need to prepare your business for the best possible asking price.
Before bringing interested buyers to your business, make sure it’s tidy and ready for showing. While investing in major renovations may be out of the question, ensuring the space is clean and organized will go a long way during the selling process. Minor improvements that are budget-friendly yet appealing to buyers include fresh paint, clean floors and spaces, and an overall clutter-free area.
In addition to tidying up, a well-trained staff can also drive up your business’s value. If your staff will remain at the business under new ownership, it may be worthwhile to invest in their training. Finding quality employees can be quite time-consuming, and interested buyers may see a business complete with a great staff is worth more than others.
Depending on the nature of your business, the cost of equipment and furnishings adds up quickly. If you plan to leave behind any equipment needed to run the company, advertise this perk to buyers. While these assets can result in a higher asking price, many buyers will be pleased with the convenience of the deal and happy to pay.
If your particular market is highly-saturated, highlight how your business stands out among the competition. While it’s ultimately up to the new owner to choose how to run the business, it can be helpful to show the current value in your business concept. Assets such as patents and other unique features can quickly increase the value of your business.
Cash flow is one of the most common factors considered during business valuations. Be sure to organize your records to help show interested parties your business’ history and proven profitability. While new ownership can make or break a business, remember that all buyers are attracted to a successful, profitable business.
During the sales process, listen to interested buyers and consider their feedback. In many situations, buyers are hesitant to place an offer on a business due to the many commonly-feared risks involved rather than just the asking price. To help increase the value of your business and support a higher asking price, consider addressing reasonable concerns from buyers.
If your business is ready to sell, consult a professional to help field offers and choose the best one possible. Contact business broker today.