A growing economy, along with the below listed favorable trends driving today's M&A market, make it a good time to transition a business:
When it comes to selling a business, owners care about more than just money. In a survey of 315 business brokers and M&A advisors, representing 37 states, they indicate that cash at close is a key desirable for sellers, as is taking care of their employees. Getting out quickly and leaving a legacy are also highly valued. Results indicate that a relative minority of sellers are interested in employment contracts and other deal structures that keep them active in business.
Identifying your priorities when you make the decision to sell can lead to different exit plans.
Below are the results of what sellers care most about besides money in the survey:
An industrious, profitable business is more attractive to a buyer than a stagnant one. Continue running your business – and improving it – while looking for potential buyers. This requires hard work, but you’ll have the energy to accomplish this if you utilize a business broker and other professionals to help you sell the business.
Here are a few tips to keep your company in good shape during the sales process.
You're thinking of selling your business and are eager to cash in and be rewarded for all of your hard work you've put in over the years.Often times it is beneficial to build recurring revenue streams into your business model, to increase your business value, in order to net enough from the sale to fund your future plans.Recurring revenue is a key strategy and value driver to any business.
Recurring revenue is a guaranteed revenue for some period of time that does not require the same level of sales and owner effort as one-time revenue. It typically results in much higher profit margins which is always highly coveted by buyers.
Examples of recurring revenue include:
There are several types of business assets you need to consider when you determine your company’s valuation before a sale. Assets are grouped by usage, convertibility or physical existence, although some accountants may use other classifications.
It can make the difference between getting your desired price or settling for less. Don’t sell your business without careful planning and consideration. A bad day, week or even a bad fiscal year shouldn’t make you part with the company you spent so long building. Consider long-term problems before putting your business on the market, such as industry changes and market conditions.
A qualified business broker is a professional intermediary who helps small business owners sell their companies. The broker provides a buffer between buyer and seller, using his or her expertise to help owners obtain the best price for their business. A broker protects your interests, files paperwork, and acts as a liaison between insurance agents, bankers and other professionals involved in the sale. Here are some other reasons you can benefit from hiring a business broker.