Many business owners have the vast majority of their wealth tied up in the business, even their home is likely used as security for a business loan, so it is vitally important to be mindful of the value of the business and also how readily that value can be realised. The ideal is to be working towards a desired sale price from the day you start business. This way you are prepared if life throws you a curve ball and you don’t get to choose when you will sell.
Luckily, factors that make a business attractive to potential buyers are also going to be beneficial to you, the owner, and you can enjoy those benefits until such time as you choose to sell.
Like other investors, business buyers are generally looking for maximum profits for minimum risk and these will be the main drivers in determining the sale price of the business. The following is a list of features you can work on. You will see that they generally relate back to either profit or management of risk.
This list is certainly not exhaustive. For more ideas imagine yourself to be a buyer. What would you like to see and what would you be prepared to pay for the business?
When the time comes to go to market, talk to a business broker. We can help you decide on that all-important sale price and we will be actively working with genuine buyers.
Have you tried looking for a business to buy? It is a daunting task! So little information is given that many of the enquiries you make will be for something completely different to what you had in mind. It is not a deliberate ploy to frustrate you, but a result of the fact that most businesses do not want their staff, clients or suppliers to be aware the business is on the market in case they become concerned about the future arrangements and start looking to move. As a result, we have had the opportunity to speak to numerous buyers who have not found what they are looking for that we can introduce to more relevant businesses. This relates to new enquiries as well as our existing data base, and being part of a team further increases our reach to genuine buyers.