7 Selling Techniques to Help Obtain the Best Price for Your Business

Is it that time? Are you burnt-out or ready to retire?  Are you thinking about selling your company? 

If so, it’s important knowing how to obtain the best and highest selling price for your company.  Selling your business is not an overnight task.   It takes time and preparation; after all, did you establish your company in one night?  

 

One of the basic steps in understanding the entire selling process is having realistic expectations- Rome wasn’t built in a day.    To become comfortable with the process it’s good to know that it typically takes the majority of business owners six months to a year to sell their company. 

 

In the meantime there are 7 Selling Techniques you can do to assist in getting the highest offer for your business when you’re ready to take it to market. 

Is it that time? Are you burnt-out or ready to retire?  Are you thinking about selling your company? 

If so, it’s important knowing how to obtain the best and highest selling price for your company.  Selling your business is not an overnight task.   It takes time and preparation; after all, did you establish your company in one night?  

 

One of the basic steps in understanding the entire selling process is having realistic expectations- Rome wasn’t built in a day.    To become comfortable with the process it’s good to know that it typically takes the majority of business owners six months to a year to sell their company. 

 

In the meantime there are 7 Selling Techniques you can do to assist in getting the highest offer for your business when you’re ready to take it to market. 

  
  1. Make sure your Business is not fully dependent on you and you alone.  

First, evaluate your position in the company.  Where do you stand?  Ask yourself, can your company run without you?  Staffing is on of the first things Buyers look at when purchasing a business.  You need to have an appropriate and adequate level of staff members, including a strong management team.  Effective management personnel are the key component in your daily business operations and meeting company goals.  Additionally, businesses with a structured management organization are more likely to sell quicker than companies that do not have a management development program in place.   

  1. Maintain accurate Books, Records and Financials.

Making sure your financial statements are in order and easy to read is not only a good practice, but it also makes your business more appealing to Buyers.  A good rule of thumb is to have a minimum of 3-5 years of tax returns, financial statements, and payroll history.  Items on this checklist are fundamentals of a successful business transaction. 

  1. Perform general house keeping.

While appearances aren’t everything it is a vital factor that influences a Buyer’s decision.  As a Seller, you do not want to present your company to a potential Buyer with the facility in disarray.    It is imperative to always display a clean and well organized business.  All areas including stock rooms, production areas, machinery, equipment, and office spaces need to be clutter-free.  In turn, Buyers may judge based on what they have visibly seen and may feel that if the Seller takes pride in maintaining the ascetics, then the additional sections of the company are highly managed as well. 

  1. Maintain Your Company’s Goals while focusing on increasing your Profits. 

Knowing and identifying your firm’s strengths and weaknesses allows you to concentrate on improving those specific areas without neglecting your company’s purpose or mission.  Managing yourself and your employees will permit you to keep your eyes open to areas that may need improving.  Your main concern is however, profit.  Sellers need to increase sales, decrease spending, and increase profits.  Focus on areas that add value to your business.  If you can prove to a Buyer that your firm can increase revenues and show profitability, this will help you maximize and receive the highest dollar for your company.

  1. Obtain a Business Valuation.

Most brokers would agree that a thorough valuation of a business is by far one of the most important factors in establishing a fair value for your company.  In fact, it is very difficult for a business owner to value his own company and derive a fair and reasonable asking price.  Having a third party business professional perform a business valuation removes all bias views and truly establishes the best and highest asking price.   Indeed, hiring a certified business appraiser provides ultimate creditability to the Buyer regarding your selling price. 

  1. Meet with your Team of Trusted Advisors.

A meeting with your attorney, accountant, and other crucial team members will play a huge role in gathering and preparing all necessary documents for your broker.  Your team of trusted advisors also needs time for preparation so they can effectively plan to assist you in the transaction.  Furthermore, it is imperative that you introduce your team to your new business broker, so that they will all be on the same page and have the same purpose and goals, which is to sell your business for the best and highest asking price. 

  1. Develop a proprietary Exit Plan with a Certified Professional.

An Exit Plan is a complete and comprehensive document that helps guide the decision making process and addresses how a business owner will make crucial decisions to successfully facilitate the transition of leaving or exiting their business.  Hiring a certified Exit Planner is by far one of the most important factors when it comes to selling your company.     An Exit Planner  can help alleviate the stress of selling your business   while you focus on running your business efficiently and increasing profits. 

 

One fact remains certain, all business owners have one goal and one goal only when it comes to selling their company and that is to obtain the best and highest selling price possible.  Unfortunately, there is not a special formula that will establish a precise price; it’s a combination of many factors.  Our 7 Selling Techniques can help you prepare for the future sell of your company.  As always, be sure to test and measure what tips work best for you and your company.  Keep in mind it can take months of preparation to obtain the best and highest selling price for your company.  For more information on the SELLING PROCESS and to find out how the BUSINESS HOUSE, incSM can help, please call 888-534-6630 for a free consultation from our team of licensed Brokers and Exit Planning Professionals or visit or www.theBUSINESSHOUSEinc.com. 

 

 

What Our Clients Are Saying

  

“We had buyers in no time flat looking at our business.”
-Skip & Laura Franklin

"Most of their competitors were only interested in fees and not selling a business."
-Keith Allen