Sellers often ask, what maximizes the value and probability of selling a business? Buyers often ask, what are the key ingredients to look for when purchasing a business?
In most cases, the answers are the same for both Buyers and Sellers.
To maximize value and increase the probability for a successful buy/sell transaction Sellers should focus on; clean easy to understand and verifiable financials, training systems in place to ease Ownership transition, customer and branding focus on the business versus the individual owner or owner’s relationships, customer/supplier diversification, niche product or process with a barrier to entry, Owner working “on” the business versus working “in” the business and – the very important ingredient – plenty of room to grow/expand. The hardest business to sell is the perfect business.
Key ingredients to look for when purchasing a business are similar. Many business Buyers are looking to build on an established platform. This allows the Buyer to apply their skill-sets immediately to the bottom-line bringing added value to the transaction and bypass the start-up phase of being the first-in, the last-out and the person taking out the trash.
Of Course, there are exceptions with many Buyers looking to purchase opportunities or assets at a discount but a company counter to the current market trends with stable/growing revenue, plenty of room to grow, significant barrier to entry and Owner working “on” the business is a business opportunity desirable in all markets.
We focus on opportunities possessing these key ingredients for both Sellers and Buyers. Please contact us if you or any of your associates are interested in learning more about these and other strong opportunities we have.