You’ve made the decision to sell your company. No matter why that is or what your expectations are, you need to get maximum value from the sale. Whether you have a debt to pay off or you plan to use these funds to help start your retirement, there are several core strategies available that can help you improve the value you get for your business when sold. When you work with a business broker in Orange County, CA, like the team at PBS Brokers, you gain insight into all of the opportunities that exist that can drive your business’s value higher.
Working with a business broker allows you to gain insight into what your company is likely to offer a prospective buyer. That is, you learn the good and the bad about what you can expect from your company. Your broker will tell you about the competition, the expectations of today’s buyers, and any concerns that may be present.
That’s the hard part. The good news is that your broker will then work with you to create a way to sell your business that amplifies your results and gives you the maximum value for your business possible. There are several ways that they can do this, but developing a strategy that fits your company is essential. Consider a few ways that brokers may present strategies to ensure you get the most for your business.
Many factors play a role in the decision buyers make to buy a company, but nothing is more important than seeing the company’s outright performance. Is the company’s performance clearly understood, or is there a need to make adjustments?
Analyzing business performance is generally the starting point. To do this it often means setting a core profit focus and then creating opportunities to boost profit margins. This may include:
- Renegotiating problem contracts now to improve outcomes
- Target higher-value customers to increase profit margins
- Improving or reducing product lines to reduce those that may be limiting profit growth
There are some quick fixes that a broker may offer as well, including price increases that are justified or in line with expectations and improving revenue paths. It may also be important to consider making the most out of any available real estate, such as subleasing available property, to start generating revenue from it. All of this will work to give your company that extra boost it needs to actually be able to hold water to your prospective business’s bottom line.
Business brokers can also work with sellers to help them paint a picture of the growth opportunities that prospective buyers can expect. As you consider moving out of the industry, you may be worried about growth and whether you can convince prospective buyers that there is a potential available to you. Yet, there often are strategies that your business broker can help you to evaluate to encourage a better bottom line.
For example, make it clear what the post-investment value of the company is going to be. That way, there is a clear dollar figure that allows the business to clearly see what the expectations are. Buyers are skeptical of any lacking information, though. For this reason, you need to be sure you can clearly demonstrate the opportunities present and minimize any assumptions that the prospective buyer has.
To do this well, your business broker has to look at the details. This includes trends and market information. The more detail you can provide here, the more likely it is to show a potential buyer what your company’s worth is based on the growth opportunities present. That may sound complex, and that’s because it is. Yet, with the right tools and strategies, it may be easier than you realize to achieve these objectives, especially with the help of a pro.
Another of the strategies your business broker will provide to you is the “who” involved in the process. That is, who is your most likely buyer? By understanding not just one potential avenue but all potential buyers, it may be possible to increase your business’s bottom line and worth.
For example, have you thought of a range of potential buyers that extends the most obvious choices? Are there organizations that may benefit from bringing your business under their wing for expansion opportunities? They may not be your direct competitors but could be your long-term customers who are ready to in-house the services you offer.
You may also want to consider other buyers, such as domestic and international buyers. Think about the customers who have been there for you for a long time and how they may benefit from taking on the business. You may even want to speak to service providers and companies within the industry or in a similar interest, suppliers that have met your needs for some time, and related companies.
The more prospective buyers you have, the more opportunity there is to increase the sales value of your company. Driving a bit of competition is always a good thing, after all.
While there are numerous ways to increase the sales potential of your company and the value you obtain, one of the most important considerations is the team you hire to help you. Unless you have a buyer lined up, you need to find a trusted professional who can dive in and offer you the solutions you need.
That means hiring a business broker. Brokers do the work for you:
- They can provide realistic information about the current worth of the company. It’s the hard but honest truth.
- Brokers work to provide you with areas of opportunity or locations within your business that could see improvement that help generate more revenue.
- They have the connections and the network to help you land the best buyer for the job.
Selling your business for the highest value possible is always your objective, but the process is not always as simple as it may seem. Having the skill and knowledge of a business broker in Orange County, CA, like the team at PBS Brokers, could open the door for opportunities for you and allow you to start on the path to finding the best buyer for your company. That is the buyer that is going to meet your expectations and pay you what you know your company is worth. Read more to find out your next steps.