Making the decision to sell your business, one that you put a lot of time and hard work into, is not an easy one. There is a lot on the line and plenty to think about when making this move. Yet, to get maximum return on your sale, you absolutely need to ensure you are working with the best team possible. Unless you have a friend who is ready to buy from you, it’s likely you’ll benefit from working with a broker business in Orange County, CA, to help you sell your company for the best value, such as PBS Brokers.
Working with a business broker ensures that you are achieving your goals:
- Sell your business for the most you can earn
- Ensure that the sale happens properly and within the legal requirements of the state to release you of any liability
- Ensure the company is going to be in good hands
- Structure a deal that works for your specific needs
- Sell your company fast
Brokers have investors ready to go, and they also have trusted professionals to help you with the entire process. By selling with a broker, you open the playing field to more potential buyers and a much larger range of potential opportunities to find the buyer best suited for your company.
Having a talented team of professionals working for you is the start. However, there are several key steps you can take to ensure you are getting the most out of this opportunity. Here are some ways to ensure you get the most for your company.
Make sure the potential buyer who comes into contact with you can clearly see the good and bad about your business’s finances. Even if the company has not been as profitable as you hoped, clear, organized, and factual data is critically important to a potential buyer. It allows them to see what the company is doing and where opportunities exist.
If you are disorganized or don’t have all the financial documents you need in hand, it’s time to get things organized. If the prospective buyer cannot see the good or the bad, they are most likely not going to be willing to move into this area and work with you.
Profit is not the only factor that plays a role in a company’s worth. It is also about the value of the company. For example, your company may stand out for several reasons:
- You are the only company in the area that offers the services you do.
- You bring value to the industry because you are using an eco-friendly solution to complete work.
- The equipment and systems you have in place are highly valuable themselves.
- Your customer base is well-seasoned and long-lasting.
- Your company’s leadership is highly educated and knowledgeable.
When you work with a business broker, they can help you determine what opportunities exist for you and how you can communicate with prospective buyers about the value your company brings to the table that others in the area do not. It’s all about standing out.
Having a stack of documents to show prospective buyers is helpful, but when you can take that information and create a more visually impactful display that they can easily see and understand, that’s even better. When working with your business broker, you’ll likely talk about the key data necessary. Gather that data and create a clear visual slideshow that makes it clear what your company is bringing to the table.
Get data that the buyer needs, including:
- Revenue for the last few years (consider a graph to display it)
- Financial statements that use visuals to demonstrate value
- Employee sheets that outline key skills your team has that are exceptional
- Infrastructure and overall assets are detailed and explained
- A breakdown of customers
- Tax documentation
The more visual this information is, the better of an impact it will have on the prospective buyer. You want to be sure they see the good your company has to offer.
You know what your business does well. You know your customers and their needs. But how well is your company actually competing within the industry and market beyond that local focus? Consider extending your view of your company further. Look at what your company has to offer when it comes to industry worth.
For example, if you know the industry is moving more towards automation, and your company is already structured to do that, that’s a valuable bit of insight that a prospective buyer needs and wants to know. What does the industry demand from the most competitive companies? Where are the gaps within your company in those areas? What opportunities exist for improvement?
Another way to increase the value of your company, even if the business is not thriving right now, is to showcase the opportunity. That is, show the prospective buyer the keep opportunities they have by investing. The infrastructure is sound, the local competition is very low, and the company has strong brand recognition within the industry. Even when your profits may not be where they should be, by showcasing opportunities for how well the company could do in the near future, you’ll pull in more interested buyers.
The key to this is working with your broker. They will be able to better understand from potential brokers what their needs and expectations are based on the industry and type of company. That way, they are then able to help you market your company to the right potential investors, showcasing exactly what you bring to the table that others within the sector may not. That could help your business to achieve better interest and drive up the value you can expect.
As you think about selling your company, keep in mind that value matters. There are numerous ways you can increase the value of your company or demonstrate it’s worth. With the help of a broker business in Orange County, CA, like PBS Brokers, you’ll have the unique tools and resources to know what to offer your prospective buyers and how to communicate your company’s worth to them. That is what is going to help to draw them in to be your buyers.
Take some time to learn more now about the options and resources available to you.