How to get the Maximum Sale Price for your business
You put your heart and soul into starting your business. You spend years turning it into a success. Now you’re ready to sell and move to the next chapter. This is not the time to rest on your laurels and assume you’ll get top dollar. To get the maximum price you need to approach selling with the same determination that you devoted to building your company’s value.
Getting the maximum sale price ultimately depends on whether your company can assure buyers that its value and success is sustainable and verifiable.
Here are some top strategies for maximizing your company’s sale price:
1. Highlight your competitive edge. A competitive edge doesn’t mean cornering a niche market or offering something for a low price. It means offering a buyer something exclusive, such as patents for a unique product that cannot be easily replicated or other “barriers to entry”, which can protect against new and existing competitors stealing market share. Showing a strong competitive edge, that can sustain both growth and margins, will help maximize sale price.
2. Kick your business out of the nest. Owners and entrepreneurs like being in charge, calling the shots, and having their fingerprints on every aspect of the business. Those traits may be beneficial when building the business—and for the ego—but they are a big negative when selling. Buyers need a business that can sustain and grow without you. You need to kick your business out of the nest and let it fly solo. That is best done by implementing systems that ensure continued successful operations and profits with minimal or no input from the owner. Sustainability is the key to maximizing sale price; without it your business might be unsellable.
3. Keep immaculate books. If you want to maximize sale price, you need to keep pristine books. It is imperative that potential buyers can clearly see documentation of profits and actual or potential growth. If possible, have the last several years of your company’s financials compiled or audited by a third party. This will make your business that much more attractive and give the buyer confidence, which in turn will help justify and sustain your selling price.
4. Show consistency. A company’s operation that runs on systems provides the stability buyers seek. Wherever possible use technology to reduce or eliminate manual tasks and processes, and develop step-by-step manuals for each system. Remember, a stable business is a lower-risk business. Stability leads to consistency, which leads to sustainability—all of which lead to selling for maximum price.
5. Future growth prospects. It’s not just enough to be doing well today. To ensure a maximum sale price, a buyer must feel assured the company is well-poised for future growth. Take the time and write a business plan that highlights your company’s growth prospects. Be sure to include all elements that can aid growth-like, potential orders in your pipeline, new markets that can be developed, and cross selling opportunities that are not being harvested.
We help prepare companies for sale by helping owners enhance value by lowering risk and improving operations.
Getting the maximum sale price ultimately depends on whether your company can assure buyers that its value and success is sustainable and verifiable.
Here are some top strategies for maximizing your company’s sale price:
1. Highlight your competitive edge. A competitive edge doesn’t mean cornering a niche market or offering something for a low price. It means offering a buyer something exclusive, such as patents for a unique product that cannot be easily replicated or other “barriers to entry”, which can protect against new and existing competitors stealing market share. Showing a strong competitive edge, that can sustain both growth and margins, will help maximize sale price.
2. Kick your business out of the nest. Owners and entrepreneurs like being in charge, calling the shots, and having their fingerprints on every aspect of the business. Those traits may be beneficial when building the business—and for the ego—but they are a big negative when selling. Buyers need a business that can sustain and grow without you. You need to kick your business out of the nest and let it fly solo. That is best done by implementing systems that ensure continued successful operations and profits with minimal or no input from the owner. Sustainability is the key to maximizing sale price; without it your business might be unsellable.
3. Keep immaculate books. If you want to maximize sale price, you need to keep pristine books. It is imperative that potential buyers can clearly see documentation of profits and actual or potential growth. If possible, have the last several years of your company’s financials compiled or audited by a third party. This will make your business that much more attractive and give the buyer confidence, which in turn will help justify and sustain your selling price.
4. Show consistency. A company’s operation that runs on systems provides the stability buyers seek. Wherever possible use technology to reduce or eliminate manual tasks and processes, and develop step-by-step manuals for each system. Remember, a stable business is a lower-risk business. Stability leads to consistency, which leads to sustainability—all of which lead to selling for maximum price.
5. Future growth prospects. It’s not just enough to be doing well today. To ensure a maximum sale price, a buyer must feel assured the company is well-poised for future growth. Take the time and write a business plan that highlights your company’s growth prospects. Be sure to include all elements that can aid growth-like, potential orders in your pipeline, new markets that can be developed, and cross selling opportunities that are not being harvested.
We help prepare companies for sale by helping owners enhance value by lowering risk and improving operations.
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