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Maximize your payout

Your business does not have a price tag attached. What you will get after closing largely depends on what impression you give the buyer. Showing that you understand the buyer’s needs will leave the strongest impression, encouraging his willingness to pay a premium for a business that will satisfy his basic needs – profitability and owning a going concern.

The bottom line is that selling a business has to be well planned in order to be a happy experience. Business Development Advocates offers services that help entrepreneurs get fair price for their businesses.
Milestones of getting your business to be sold for a fair price.

  1. Cleaning up your business records
  2. Reviewing the business web site
  3. Making a comparative market analysis
  4. Listing with Business Development Advocates


What Buyers Are Interested In?

Generally buyers (except in some exotic situations) are looking for two things:

  1. Return on investments
  2. A going concern
A 5% ROI is probably justifiable for municipal bonds. Investors in private equity are looking for much higher returns. Think what your selling price should be in order to provide 30-50% ROI.
A ”going concern” is a fancy term for the company’s ability to continue profitable operations in the future. Sure, investors worry what will happen to the company after you will walk out of the door. Will it run smoothly or will it collapse soon after?
Those two variables are mutually dependable. If you can prove that your company can be operated by another person, that proof takes off a lot of pressure on ROI side. Buyers are more willing to pay for something that will work for a long time. High ROI is just compensation for the risk of the business going belly-up in a year or two.
A conscious buyer looks at the quality of the reporting system first. Is the accounting done in-house or outsourced? Is it current or is only last quarter is available? What reports does the owner review regularly? And so on…
The business web site is also important. The company web site is the tool of first impression. If the buyer is not impressed, the company’s clientele probably is not either.
The smart buyer looks at financial ratios. If the seller’s gross margin is higher than the industry average, that helps the buyer to reduce the discount rate (ROI requirement). Suppressing the discount rate by 5% can leave tens of thousands of dollars in your pocket.
Business Development Advocates helps to build a state-of-the-art accounting and online marketing system that will make your company appealing in any investor’s eyes while boosting its market capitalization. Call us for a free preliminary evaluation of your business