Business owners decide to exit for different reasons. You might want to sell because of retirement, you are moving to a new state, moving to another phase of your professional life, or simply because the opportunity presented itself. Regardless of the reason you might want to sell, it is paramount that you plan your exit well. Here are some tips to help you get the most profit from selling your business.
Before setting a price for your business, you’ll want to determine its worth. Some of the factors that determine your business worth are the value of existing inventory, current accounts receivable and payable, and the value of assets such as real estate, equipment, and vehicles. To increase the value of your business you can take steps such as getting your finances in order, cleaning up your premise to improve curb appeal, and increasing profits.
Before making an offer, buyers want to see growth potential, stable customer growth from different sources, solid supplier and vendor relationships and demonstrated history of repeat business.
What’s the Best Time to Sell your Business
Timing is important when selling a business in Florida. You want to sell your business when the M&A market is active and also when your business is doing well. Most people make the mistake of trying to sell their business when the sales are down and still expect to maximize the profits. This is never a good idea since most buyers are looking for a company that has the potential to make a profit, You are therefore advised to put extra effort and spruce up your business before putting it up on the market.
Screen Potential Buyers
You are advised against disclosing business information to potential buyers before vetting each one. Find out whether they have the means to buy and develop a list of pre-qualified buyers.
Work With a Business Broker who can offer their expertise for a commission. They will assist with evaluating our business, getting your finances in order, and marketing your business to the right buyers. A business broker can help you gain maximum profits from selling the business and will do their best to negotiate the price so that they too can earn more in commission. A notable benefit of working with a broker is that they take care of all the paperwork and complex processes involved with this type of transaction. You can learn more on this at Truforte Business Group.