Has the time come for you to sell your business? If so, it goes without saying that you are going to want to sell it for the maximum possible price. However, this is, of course, a lot easier said than done. The key to selling your business for the most profit is to put in a lot of preparation. You cannot simply call up the professionals, tell them to put your business on the market and sit back and wait for an offer. There is a lot more to it than this. With that being said, read on to discover the different ways that you can maximise profit when selling your business.
Establish recurring revenue agreements – The first thing you need to do is establish recurring revenue agreements. For small businesses, sales are the engines that drive success. In the period leading up to your exit from the business, you need to look for different ways to generate gross income for the new owner from the moment they take over.
Keep key employees on board – Another tip to ensure you are able to command a high price for the sale of your business is keeping your key employees on board. The best buyers know that the most valuable businesses are those that have the best talent. So, how can you convince people to stay on once you are no longer there? It is all about putting airtight routines and processes in place so that the company can function effectively without any of your direct involvement.
Differentiate your services and products – This is especially important for small businesses. Companies that have differentiated services or products in the business-for-sale marketplace are able to command a much higher price. Nevertheless, for this to be the case, you are going to need to show that you have a unique position that means you are able to dominate a part of the market. This means that you are going to need to develop intellectual property, promote patents, and any other unique features of your services or products that are going to give you a competitive edge.
Make sure you hire the right professionals – Last but not least when it comes to putting your business on the market, you need to choose the company that you align with carefully. You need a business that has a lot of experience in dealing with companies of your size, structure, and nature. They should have sold numerous companies in your industry before. For example, AFHWM is a good place to start if you are looking to sell your IFA.
So there you have it: some of the best ways for you to increase the value of your business when you put it on the market. While the above steps do demand a lot of effort, they will be worth it in the end when you are able to demand a higher price for your business and you are able to back-up your case for doing so.
