More Than a Multiple of Last Year's Profit.
Your value is the quality of your earnings, your customer concentration, how much the business depends on you personally, the condition of your equipment and contracts, and how clean your numbers look to a buyer. We look at all of it.
How consistent, well documented, and normalized your earnings are drives the multiple a buyer will pay.
Concentration in a small number of accounts lowers value. A diversified base raises it.
Documented systems and a team that can run without you make the business easier, and safer, to buy
Clean financials, organized records, and resolved legal issues shorten diligence and protect your price.
10 Ways to Increase the Value of Your Business Before You Sell:
Focus on increasing profitability and reducing unnecessary discretionary expenses before the business is marketed.
Current financial statements, tax returns, and supporting documentation inspire buyer confidence.
Address deferred maintenance, clean and organize the premises, and resolve lease issues whenever possible.
The less the business depends on the owner, the more attractive it becomes to buyers.
Identify customer, supplier, lease, employment, and other important agreements that may affect the sale.
Whenever practical, resolve outstanding disputes or litigation before marketing the business.
Present well-maintained assets and accurate inventory records.
Buyers pay for future potential as well as historical performance. Document expansion opportunities whenever possible.
Keep the process contained. Staff, customers and competitors should hear it from you, when you are ready.
Twelve to twenty-four months gives every one of these items time to show up in the price.
Common Mistakes
- Waiting Too Long to Prepare
- Neglecting Financial Records
- Letting Financials Deteriorate
- Depending Too Heavily on the Owner
- Talking About the Sale Too Soon
- Waiting Until After Retirement to Plan the Transition
A Realistic Range, & the Factors that Affect It.
Any range we provide is a preliminary, informal estimate for discussion only. It is not a formal or certified valuation, and it is not financial, tax, or investment advice.
Let's Talk, on Your Timeline.
First meeting strictly confidential.
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