Considering Selling Your Business . . . These Are Some of The Things You Should be Thinking About

I am often asked about what things an owner needs to consider when contemplating the sale of their business. The following topics will be a helpful start:
Financial Performance
This is one of the best indicators of your company’s present position and growth potential. To understand the firm’s current financial health buyers will look at key metrics such as revenue, profit margins, and cash flow. They will be very interested in the company’s financial history to see if it has consistently grown, and if the company has been impacted by the resent pandemic.
Market Trends
Buyers will also consider the overall market trends in the your company’s industry. They will want to know if the market is growing or shrinking, if there are any new technologies or trends impacting the company’s growth potential? Helping a potential buyer to identify these areas will go a long way in helping to bring the new owner on board.
Management Team
Your management team plays a key role to a potential buyer. Your internal team’s experience, track record, and leadership style are all important to a new owner. A company that is viewed as a “one man band” will affect the price, overall interest and make the company very hard to market.
Innovation and Growth Strategies
All potential buyers are looking for a road map on how they will fit into the new business and if they can increase revenue. Do you have a clear plan for how it will grow and expand? Are any new products or services in the pipeline that could drive future growth for the new owner?
Considering the above aspects can help you better understand what you need to consider before you put your business on the market.
About Susan Wiley
Susan Wiley brings hands-on expertise on how to start-up, lead, and grow a small business. Susan formulates the deal structures that are the basis for the successful business transfer process and is a Certified Machinery and Equipment Appraiser (CMEA). Learn more about Susan here, contact her or connect with her on LinkedIn.