After putting a lot of time, effort, and money into establishing a business and making it a success, you might be ready to take a step back or even retire. If this is the case, then selling is sure to be the way to go. Aside from being a bittersweet time for you, it is also a time when you need to make a lot of decisions.
With all that you did for your business to be where it is now, you deserve to reap a lot of benefits, too. Just like homeowners desire when placing their houses on the real estate market, you are bound to want to get a lot of money for your establishment. Even if it is currently worth plenty, there could still be ways where you can earn even more.
The subsequent tips may act as a guideline for ways to optimize your business as it enters the sales market. While you might be able to figure a lot of this out on your own, the most accurate way to determine what you need to do is by working with a professional.
When sellers are looking for a business broker in Orange County, CA, they turn to the experts of PBS Brokers. Using their years of expertise, they can go over the different market trends that buyers in the area have been seeking while evaluating your current operation processes.
Know Where You Currently Stand
Before you can implement any type of change to your business model or the establishment itself, you will need to know what your worth is at the present time. This is the only way to truly understand whether you are satisfied by your worth and to help you identify the areas where you are lacking.
PBS Brokers offers a free analysis tool on their website so that you can find some answers before you even sign an agreement with them about using their services. Once you have the details, you can move on to thinking about any of the other possibilities mentioned in this article.
Check Your Revenue
As crucial as it is for you to make money, buyers are looking for the same thing. Very few individuals are going to risk purchasing a company that they cannot guarantee will bring them profit, so you will surely be questioned about how much money your business brings in on a monthly and yearly basis.
Before selling, make sure that you go over your financial statements and look for any trends. Are sales on the rise, or have there been lags recently? You will want the former to be confirmed before you put the company on the market, or else people will be hesitant to buy off of you.
What Are Your Services?
The industry that your business is a part of is also essential to keep in mind due to the fact that some products or services are more sought after than others. This plays into the discussion about your financial situation, as mentioned above. Not only that, but it can also determine how much of a “risk” your company is.
While offering popular services is bound to make more money, it can also mean that you have a lot more competitors. When marketing your business, you should be aware of where and who these rivals are and figure out what makes you stand out from them. The latter is important to emphasize whenever you speak with prospective yet hesitant buyers.
Work With Multiple People
Whether it be your employee pool or vendors you get products from, there are key people who help with the success of your business. Although working with a smaller group might sound much less stressful, it can actually take a toll on the market price of your company.
If you only have one or two critical contracts, buyers are going to be worried about losing them whenever you hand them the reins. The same can be said if you have an extra small staff, as some might not be willing to work for new management. Even if you cannot increase the number of people on your team, you should discuss the fact that you are selling. Make sure that they are willing to stay on board for your replacement before promising anything to buyers.
Just like with selling a home, a business should be as modern as possible. After all, would you be interested in purchasing a property that had outdated technology and an aged-looking interior? Buyers want businesses they can devote time to running, not places that they have to take months to remodel.
Look over the last time different systems were updated in your business. Are there any issues with the plumbing? Could the HVAC system be more energy-efficient? While initially investing in these changes might be high, your market value will be higher, and more people will be interested in buying the company.
The Next Steps
Once you believe that you have all you need and that your business is at its peak market value, it is time to sell, and the team at PBS Brokers can make the process easy for you. They utilize a full step-by-step guide so that you know what to expect from the get-go. There is never a hidden fee, so you can always expect the utmost transparency when you partner with them.
After you go to them about evaluating your market value and you determine you are ready to move forward, you will sign a Representation Agreement, and their team will put together an NDA and CIM, which are sent to prospective buyers whenever they arise. PBS Brokers will always ensure that the people who are eligible to take ownership are qualified for the job, too, so you never have to worry that your livelihood is falling into the wrong hands.
Once the perfect person is chosen and negotiations, Due Diligence, and financing are all taken care of, they will help you and the buyer come to an agreement and close on the sale. But they don’t stop there- they make sure you take the proper steps to transition the new owner into their role so everyone feels as prepared as possible.
PBS Brokers understands how stressful selling can be and will not hesitate to help any owner throughout Orange County. In the past two decades, they have provided assistance to a range of fields, including aerospace, e-commerce, and healthcare. Just like they care about helping sellers, they devote time to buyers, too, making sure they get the necessary resources they will require to make a purchase, such as SBA financing.
You have gone through a lot during your time as a business owner, so now that you’re taking a step back, you deserve to be rewarded for your hard work. Selling your business at the highest possible price ensures you have some extra money saved for the upcoming years. Use the Free Market Value Analysis tool on the PBS Brokers website to see where your business stands as you prepare for the next phase.