The following are some “how to” factors which will quickly embellish your business in a manner that will draw in a potential buyer in to learn more. The amount of owner benefit and the asking price is the first focus, other characteristics commonly looked for are:
- The business and its face is not the owner. When this is perceived as an issue, the buyer will wonder how customers will transition when the seller is no longer around.
- The business is structured and staffed in such a way that the owner can’t or doesn’t take vacations or get away for any length of time. Although this may be fine for the seller, most buyers want to be able to take some time off and have a life.
- Although the business in its current state can financially provide for a buyer, the opportunity for growth is unclear. Most buyers want to be able to grow a business, so a seller needs to have suggestions at the tip of the tongue.
- There are excessive add-backs to establish owner benefit, which could be an issue when applying for bank financing. The year before you decide to sell, keep those types of expenses out of the business. Better yet, start the clean-up process two years before going to market.
- The seller doesn’t have a good reason for selling. Most buyers are leery of an owner who wants to sell a business that appears to be making good money, particularly if the seller is not of retirement age. WHY is the question? Few people will sell a healthy, money-making business. What does the seller know that the buyer does not? This issue raises questions and uncertainty in a buyer’s mind.
As a seller or a buyer, if you would like a confidential conversation about how to prepare, please contact me on my cell, 954-579-4687, or by e-mail at firstname.lastname@example.org. My LinkedIn profile is at: http://www.linkedin.com/in/dolansales. Dolan Sales Branding: https://youtu.be/6mRcOCabA4s