If you’re planning to sell your business, you may think that it isn’t worth it to update or maintain your equipment. However, that is far from the truth! If your business requires equipment to run, the tools you have will add value to your company. However, don’t think that if you have a warehouse full of broken or outdated equipment, you’ll be raking it in. You’ll need to keep it in shape with regular maintenance and updates as needed. What is Considered an Asset? Most often, furniture, fixtures, and equipment…
Whether you’re selling your business in 12 years or 12 months, it’s important to be able to show your company’s worth on paper. Having thorough financial records is a key to making a sale. Qualified buyers are going to want to do their due diligence before they make a purchase, and that means they will want to see a solid cash flow. Even if selling is far from your mind, at least once every year you should review the following: Any additional documentation to substantiate financial representations 2-3 years of…
You know your business is valuable, but that isn’t enough when you’re selling. The profitability of your business sale is dependent on its value in the eyes of the buyer. While that idea may sound difficult to wrap your head around, it’s easy to comprehend if you break it down into the 10 main indicators that drive the value of your business. The 10 Best Drivers of Business Value Stable Cash Flow: The most important indicator of value is a steady pattern of cashflow. Obviously, a business that doesn’t generate…
No matter how complicated it seems, you have one goal when you buy a business: to sell your business for a good price to a qualified buyer. The vast majority of buyers fall into one of three categories, so it’s a good idea to educate yourself before the process begins. Deciding which type of buyer best suits your company will help you sell your business for the best price to the buyer who will be able to continue your legacy. Individual Buyers An individual buyer is someone who is looking…
Most sellers want their business to change hands as quickly as possible, but things don’t always go as planned. However, there are certain steps of the process that you have the power to shorten, like the rate at which the buyer’s loan is approved. Unless your buyer plans to pay cash, they will likely need to obtain a small business loan through the Small Business Administration (SBA). The SBA does not loan the money directly, but when you apply for an SBA-backed loan, you are essentially asking the SBA to…
No matter how eager you may be to head to the closing room, selling a business takes time. It’s paramount that during the process, you keep your revenue and profits high. When potential buyers do their due diligence, they will want to see recent history of the company, as well as history dating back several years. The time right before you sell can be very sensitive. If your business looks like it’s on the decline, this could scare buyers. They may end up walking away from your business or making…
Making the decision to sell your business can be such a relief–it’s tempting to shout it from the rooftops. However, we strongly recommend that you don’t do that! It’s especially important that your employees don’t find out about the sale too soon, as it can lead to chaos. No matter how you break the news, employees tend to assume their job is in jeopardy. And having an experienced staff in place can really help your company to sell, so you want your workers to stick around now more than ever….
In the famous words of Yogi Berra, “it ain’t over till it’s over.” The same can be applied to business sales. We’ve seen it many times before. After a long process, a business owner finally finds a buyer for their business, and they rejoice! They’ve finally secured a great deal, and they can relax. Then, at the last minute, the buyer backs out. It’s a major let-down, but it happens more often than you’d think. When you’re selling a business, you need to be prepared for anything, and keep in…
When it comes time to sell a business, many owners underestimate the process. They think it’s something they can take care of on their own and can’t see a need to enlist the help of a professional. However, they are most often rudely awakened when they realize how difficult it is to orchestrate the process without skilled help. Trying to juggle running and selling a business at the same time is challenging. While some business owners are able to successfully sell their business on their own, working with a business…
Company culture can make or break your business’s success. Employees of companies with stronger cultures tend to be motivated workers who stick around long-term. The right company culture attracts top-notch employees and thriving sales, not to mention, a qualified buyer for your business. Culture is defined as “the integrated pattern of human knowledge, belief and behavior that depends upon the capacity for learning and transmitting knowledge to succeeding generations.” In the business world, culture is how day-to-day operations play out at your company. The way your employees treat each other,…
