Sell Your Business
Payday for all the blood, sweat and tears you invested in starting, growing and now selling your privately held business.
This is it! Make it count.
Too many people fall down when it comes to cashing in on the real value of their business. Selling is the culmination of years of hard work. Yes, you received an economic benefit in the process of building your successful business, but there is more to be gained.
You may be suffering from illness and fatigue (you are sick and tired of operating your business). Your attitude will impact the final selling price of your business if you allow it to determine what you ask and how you market your company.
American Hope Success M&A advisors will help you overcome the mistakes most sellers make when presenting their business for sale. Here are a few of the common price killers!
2. Underestimating the real value of your business is one of the worst mistakes sellers make. An appraisal utilizing Discounted Future Earnings, Discounted Net Cash Flow, Comparative Companies, Price to Earnings, Price to Revenue, and Price to Cash Flow analysis will provide a starting point for your decision on the asking price. At American Hope Success, we believe the “Opportunity Factor” should also be considered. Your business is a tool the buyer can use to build an even greater enterprise. Your existing business is a toe-hold you have started, and your buyer can capitalize on for unlimited future growth. Making the purchaser aware of how to turn your business weakness into opportunity can significantly raise the perceived value of your business.
3. Unwillingness to accept terms. It is always scary accepting terms from your buyer. Will they be successful? Will they run the business into the ground? Will they offend customers, suppliers and or employees? The easy way to alleviate those fears is to demand an all cash sale. An all-cash deal is sure to reduce the selling price. Ask your American Hope Success advisor how to structure a seller financing strategy that will overcome the common fears of seller financing. Remember, you can charge a higher interest rate than you will expect from putting your money in the bank.
4. Two sets of books. Showing the buyer two sets of books does more damage than good. In the buyer’s mind, you establish a lack of trust. If you will lie to the IRS which has the power to put you behind bars, why should the buyer trust anything else you say about the business? A written “game plan” to turn the business’ weak points into opportunity is a far better approach.
Click here to receive a free estimate for our help selling your business.