Selling your business can be the right decision you take regarding to the situation you are in. It is not always a bad thing to sell your business especially if you are benefited from it. The point is not about selling your business but at what price you are willing to let it go. Your business might be more saleable than you though it was. If you are not careful about it, you might end up being regretful with your decision. Hence, it is a must to take any consideration before deciding to put your business in the market.
Selling your business as an exit?
Selling business is often seen as an exit. When you are no longer capable of taking care and running your business properly the way you wanted, you may consider selling it. However, it is not easy to sell your business since the competition in the market is so tough. The best things when you decide to sell your business is to maximize its value so you get the best deal structure when seeking out an exit. Here are some important tips to optimize your business value when you sell:
Set your goals as clear as possible
In order for you to know of what to achieve upon sale, you need to set the goals as clear as possible. You can even write your goals down on paper to make it as real as possible instead of just fragments of empty thoughts that stay only in your mind. Decide in what price you want to sell your business and when you will do it. Also, think about the feelings you want to feel upon sale. Once you set the goals, imagine the scenarios. By doing these things, you will be able to go through every process of it with more patience and resilience.
Calculate everything thoroughly
Detailed calculation is needed upon selling your business if you want to maximize its value. Make sure to calculate it based on seller’s discretionary earnings or SDE. Make sure you count everything from from business profits to plus perks and expenses. Make sure to be as thorough and detailed as possible so the number resulted will be accurate. If you are unsure about your calculation, seek advice from financial professionals or experts. They will take a look at your book and help you decide what to do to optimize your business value. They may also spot the things you missed with your calculation.
Be aware of the market norms
Keep in mind that business value is set by market norms. Hence, it is recommended that you create a competition. It means, you can present your business for sale to more than one potential buyer. The more parties are interested in your business, the toughest the competition will becomes. They will compete to offer you maximum value. More buyers means more demands and it can drive the price up. This way, you get more opportunities to get the best deal terms.