If you’re thinking of selling your business, you obviously want to fetch top dollar for all the hard work and time you’ve put into it. So is there a way to prepare so that you receive the highest sale price? Yes! There are several measures you can take to get the best price when selling your business:
1. Start Preparing Yesterday
Ready to sell your business today? Then you should have started preparing over a year ago! Selling a business, especially for the highest possible sale price, takes time and patience. Not only do you need time to prepare your business for sale (much like you prepare and stage a home for sale), but potential buyers also need time to conduct due diligence and make sure your business is a good fit for their needs. If you rush the preparation and sales process, then you’ll have to compromise by selling for a lower price. Avoid this by giving yourself as much time as possible.
2. Use a Professional Business Broker
You may be tempted to try to sell your business yourself, but statistics show that business owners who use the services of a professional business broker get the best sale prices. Business brokers know the current market conditions, how to strategically price your business for sale and buyers who are looking for businesses just like yours. Take advantage of all the resources and knowledge available to you by involving a business broker in your sale.
3. Get a Professional Valuation
Knowing how much your business is worth in its current state is an important jumping off point for any business sale. A reputable business broker is the best place to get an honest, accurate valuation of your business’s worth. We recommend getting this valuation at the beginning of your sale preparation process, then again once you’ve implemented measures to boost your sale price.
4. Increase Revenues
You can’t do much about your revenues in the past, but from now until you list your business for sale on the market, you need to do all you can to boost your revenues. While historical data is important to potential business buyers, they also love to see a business with recent growth and room to run. Really put in the effort to get your products or services in front of as many people as possible, pulling in every possible sale, and watch those buyers’ eyes light up when they see that revenue growth on your financial reports.
5. Build an Amazing Team
You’re not just selling your inventory and equipment…if your business has employees, they’ll probably be part of the deal too. You want your team to be just as impressive as the products or services you sell, so work on building the best team possible in the early stages of preparing to sell your business. Ensuring that each employee does their job correctly and efficiently, and minimizing labor waste by eliminating positions that don’t bring enough value to the business. You can also bring on a skilled manager to handle day-to-day operations to attract passive income buyers. No one wants to deal with replacing all the employees of a business just as soon as they buy it, so be sure your employees are aware of the potential sale, so they don’t all jump ship before the ink dries!
6. Get Organized
You’ll get lots of advice about cleaning up and organizing your financials prior to a business sale, and that is really great advice, but we’d argue that you need to organize more than just some reports. Standardize your processes, write down policies and procedures, and clean up any physical clutter in both retail fronts and areas customers can’t see. Buyers do not want to walk into your locations and see a big mess they’ll have to clean up…take the time to organize every single aspect of your business to make it as appealing as possible.
7. Watch the Market
If the last few years have taught us anything, it’s that timing the markets can yield some pretty big profits. If you’re following #1 above, then you’ll have time to watch the markets and recent sale prices for businesses similar to your own. Pay attention to how national and world events affect the sale prices of businesses, then use this knowledge to your advantage by listing your business at times when sale prices are highest. A business broker is a great asset when trying to navigate markets and industry trends.
8. Require Buyer Qualification
Preparation for the sale is important for both sellers and buyers. Unprepared buyers can put up serious roadblocks to selling your business due to waiting for or not even being qualified for financing. This is why we recommend implementing a buyer qualification process to weed out buyers who aren’t 100% committed to seeing the sale through to the end. When you’re represented by Tampa Business Broker Inc, we thoroughly vet all potential buyers before establishing any form of communication with sellers, minimizing time wasted by ineligible or unmotivated buyers.
The Best Business Broker in Tampa Bay
Now that you know how to get your business in its best shape for a maximum sale price, it’s time to call Tampa Business Broker Inc to get some help with the process. Our founder and CEO, Pete Harrison, has almost 20 years of experience buying and selling his own businesses, so he knows Florida’s markets and trends. His services cover over 40 business industries, including franchises. No matter what type of business you’re trying to sell, Pete will get you the best sale price with the most favorable terms. Give Pete a call at 813-469-7957, or contact him online to get started today.