Background
- Selling a business is very complex.
- Buyers are more cautious and much more rigorous in their due diligence efforts since the Great Recession.
- Deals fail because owners do not plan early enough to sell their business.
- Time and planning are required to maximize the sale price.
- Failure to plan often leads to a lower purchase price or no sale at all.
The key to increasing business value is to understand how a potential buyer views your business.
- Obtain an independent, professional valuation.
- Engage an objective business adviser to conduct a business audit and assessment to reveal the key business value drivers.
Key business value drivers may include:
- Sales growth trends
- Balanced and growing customer mix
- Strength of sales backlog
- Strength of the market niche
- Strong products and services brand
- Highly skilled, efficient and loyal workforce
- Solid vendor relationships
- Product differentiation
- Product innovation
- Strong management team to transition to the new owner
- Robust management information systems
- Continuous growth
- Barriers to entry
- Strong company culture
- Loyal customer base
- Company culture
- Existing customer relationships.
Conclusion
If you are considering selling your company, allow sufficient time to correct issues and build incremental value. Poor exit planning can erode the value of a lifetime of success.
For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall, CBI, CM&AP at Eric@EdisonAvenue.com or 239.738.6227. Also, visit our Edison Avenue website at www.EdisonAvenue.com. To search for Florida Businesses for Sale: CLICK HERE
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