We can help you understand what your business is worth and why, what is happening in the market and what can be done to maximise your sale price (2 see our maximising your sale price)
Maximising your sale price is a huge process and undertaking this as a goal ideally becomes part of a 3-5 year strategy. You cannot go back and change the figures from former years and the financial trend for each year does tell a story ie is the business fluctuating and why? Is the business organically growing and why? Is the business going backwards and why? Is the business seasonal and why? And so on.
In order to get the best price for your business here are just some things to consider;
- The business as a whole must have appeal, be demanded, be desirable
- Can the owner take say a month off? Proving it can run without the owner and the owner isn’t trapped in the business
- Work with your accountant on your financials to manage benchmarks, look for consistency with KPI’s and keep the figures up to date and clean. Don’t mix other business interests together keep them separated.
- Ensure you have a good brand and a good reputation. Online reviews these days can be very damaging. Ensure you have an online strategy for promotion, testimonials and branding.
- Ensure you have a good relationship with your landlord, pay rent on time, keep the lease long term providing security of occupancy and the premises in good condition
- Have systems and procedures in place, documented and up to date.
- Do a SWOT analysis on your business (Strengths – Weaknesses – Opportunities and Threats). Look for all internal and external strengths about your business, eliminate or manage weaknesses, create and look for real opportunities they buyer may like and reduce/eliminate or manage weaknesses.
- Try to manage any agreements or terms you have with suppliers or customers and ensure these can be transferred especially if they offer distinct benefits or exclusives etc
- If you have a CRM system or database try and use its capabilities to show how it manages aspects of the business, produces reports or allows communication with customers.
- Ensure your staff are well trained, enjoy the culture, share responsibilities and can look after things if the owner is away. Good staff can make the business.
As mentioned maximising your sale price comes down to so many aspects of the business and every buyer will want similar things but drill down on certain areas. If you run a good business and are always looking to improve and develop your staff, your brand and ensure the owner of the business is able to get away for a holiday you are off to a good start.