In this video, selling your business for a premium price it’s the objective of every owner. What will you need to do to make sure that your business qualifies for a premium price.
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The first place to start is understanding what your business is worth right now in the market. You need to identify the drivers in your business that will detract from its realisable value and getting a business review from a professional business broker will help you to identify these drivers. Every business is unique and will have elements that are not going to be viewed favourably and therefore will reduce the price buyers will be prepared to pay.
Once you have identified these drivers, you can then optimize them or remove them all together so all that is left are attractive selling points that buyers will pay top dollar to inherit. FOMA11. Let’s go through the top 12 key drivers that buyers find attractive.
The business has a firm management team in place.
The owner works 40 hours or less per week.
The business has shown growth in revenue, gross profit and net profit for 3 years in a row.
The business has more than 1 revenue stream.
The products of the business are simple to execute.
The business does not require specialist staff that are difficult to replace.
The lease of the business has 10 years + remaining.
The customer and supplier base is broad.
Financial accounts are up to date and reliable.
Plant, equipment and machinery is in good condition.
Licenses and permits are easy to renew and maintain.
Business processes, recipe’s and IP are well documented.
If your business ticks 8 of these 12 boxes, then it is likely that your business will already qualify for a premium price. If your business can’t tick 8 or more, then get in touch with Vision Brokers and Advisors to discuss your strategy on how to increase the value of your most important asset.
Also, if you want to establish your benchmark for what your business is worth then see if your business qualifies for a free business review with us. Thanks for watching, happy buying and selling!
Good luck, and make sure you have a look at our business for sale.
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