It is important to plan ahead

Getting the best possible selling price for a company can be a nerve-wracking and tedious endeavor. But with clever planning and timely preparation of the organization, company owners can often increase the value of their business and make the company more transferable. Below are tips for selling a company to not only ensure a successful transaction and handover but also maximize the chances of getting a better price for it.

• Start planning in good time: A company is not sold overnight. But when should the preparation process ideally begin? Experts agree you should start as early as possible, as soon as you make the firm decision to sell. You as the owner should develop a common strategy with your partners, staff, and suppliers, otherwise, it can lead to very strong disruptions in business operations.
• Invest in expert advice: The sales process of companies is a complex process with many pitfalls. That is why it pays to have competent professionals and experts on board right from the start. The experienced business brokers at Truforte are waiting to offer you personalized advice to ensure the successful sale of your company in Florida.
• Accurately determine the value of the company: Industry multipliers, which are derived from key performance indicators, provide orientation for an initial company assessment. This is only the beginning of the negotiation, at the end of which there is almost always a lower valuation from the one you initially had.
• Perform due diligence to reveal weaknesses: It is not uncommon for owners to try to influence the company valuation positively. A common example is where the company owner tries to eliminate possible risks for the buyer as part of a seller’s due diligence. If there are good figures in the balance sheets, but a lag in innovation in the company, this will be uncovered in the due diligence process. It is therefore important that weak points in the company are identified and rectified before the sale.
• Growth potential increases value: Before buying a company, investors primarily look to see whether the business model will still work in the future or whether it can be modified so that it is future-proof. Continuity in management and investments in digitization and new technologies are therefore elements that will add value. This is because a company that is not sustainable is not valuable.

There are some additional tips about selling a business here. You may also want to check out some of the key factors to consider when confidentially selling a business.