Author: Dave Richards

When is the Right Time to Sell My Business?

A key question many business owners struggle with is…when is the right time to sell my business for its maximum value?  This is often a very personal decision with several aspects to consider.  There are 5 key questions to ask yourself.

1. Is my business growing, remaining flat or declining?

For business with sales and profitability that are growing at rates of 10% or greater, they provide an outstanding opportunity to capture a premium.  The business trends over the last 3 to 5 years is a key factor prospective buyers look for and greatly influence what they are willing to pay.  Businesses which have remained relatively flat do not necessarily generate the same level of interest as high growth businesses.  However, they are generally good businesses for a buyer to consider if they provide market potential and represent an opportunity for a new buyer who is willing to explore new avenues to grow the business.  Businesses which are trending down are often passed on by most buyers due to the risks involved unless the problems are easily identified and the path for turning things around is clear.  If this is the case, you should either spend the time and energy to get things back on track or be prepared to accept less for your business.

2. Am I still motivated to operate my business?

I have represented many business owners who own a strong business and have developed a reliable business model, but lack the energy or motivation to continue to operate at maximum (more…)

Sell Your Business In The Shortest Time, For The Most Money…

Do you want to sell your business in the shortest time, for the most money?  Here are some things to consider:

Proper Preparation is Key 

In a normal market with the right preparation, it takes on average 6 to 8 months to sell a  business.  If the work isn’t done ahead of time the business may never sell.  To sell your business in the shortest time, for the most money:

It is important to have a clean set of financial statements, preferably 3 years of comparative numbers.  A prospective buyer is going to rely on this information when he makes his offer, so the numbers must be verifiable.  Nothing kills a deal faster than information presented that cannot be substantiated.  Ask your advisor or trusted business friend to role play with you to (more…)

Business Transaction Market Update

Transaction Growth Up More Than 41% from Same Period Last Year

Small business sales have continued to improve through 2013 and into the Third Quarter as a result of the improving overall economy, strong supply and demand fundamentals (i.e., an aging business owner demographic and an increase in the number of qualified business buyers) and continued improvement in small business performance. (more…)

Key Factors that Increase or Decrease Business Value

There’s a range of key factors that can affect the value of a business. While some of these factors are outside of the owner’s control, steps can be taken to make the business as valuable as possible. Start planning well in advance and consider inserting an exit strategy into your original business plan. Then start implementing the factors that increase value and eliminate the factors that decrease the value. (more…)

If you are thinking of selling your business… How is your Exit Plan?

A business should be a constant ball of energy moving in different directions as the economy changes, new tools and innovations come to the market, the stress and strain from competitors and the ever changing demands of customers.  This is what gets an entrepreneur out of bed every morning; the chance to do something different, learn something new, to see the rewards of hard work, to plant new ideas and watch them grow or to help someone do something they thought they may not be able to do. (more…)