Some Great Tips for Selling a Business
There may come a time in every company owner’s life when they consider the possibility of selling a business.
With the cost of running a company on the increase, this can be one of the main reasons – but sometimes it might just be down to the fact that an agency may be better off in a fresh pair of hands. When it comes time for a CEO to consider this option, the chances are that they will want to ensure that they receive as much money from the sale as possible.
It’s not unheard of for some owners to be so keen to sell that they do so at very low costs; but considering the resources available (including marketing and customer targeting), there’s really no need to settle on a smaller payment. If you’re considering your options or if you are in the process of selling a company, here are a few tips to help you to get the most out of the transaction.
Pick the Right Time to Sell
Markets can be prone to fluctuation, even over the course of a single year. If you sell when your market is experiencing a reduction in value, then you could be losing out on thousands of dollars. Wouldn’t it make more sense to hold onto your assets for the right time to sell? You could always seek business selling advice to identify the key times.
Know What You Are Worth
In most cases, the value of a company being sold will be calculated by using the following formula:
Annual turnover x 2 (years)
This means that if you make $100,000 a year, you should expect to sell your company for what you’d make in two years ($200,000 in the above instance). This isn’t always the case however, and so it can be tricky to decide on a valuation without expert advice. As mentioned above, an advisor is well worth hiring to give you a better idea of your businesses’ value.
Target the Right Market
If your business is in the vehicle supply industry, then it won’t make much sense to target sweet shops. By focusing your attention on your particular market, you’ll be putting your company in a position to meet the right type of buyer. This could be a larger company hoping to expand, or a smaller one hoping to grow – but in either event, they will undoubtedly understand the value of your assets and will usually be willing to cover the costs.
Read more about Selling a business at http://www.insursmarket.com/business-for-sale/