Every business seller hopes to get top dollar for their business when the time comes to sell, but what factors can make this hope into a reality? What follows are some factors that can mean a better selling price for your business:
Top Of The Pile
If your business is the industry leader, or even just the industry leader in your area, this can be a major selling point. A business buyer is looking for a business with a great reputation and a long history of good performance. If you are the top business, you likely have those attributes.
Not there yet? If you are thinking about selling, but you are not your local industry leader, look at ways to increase your performance and improve your reputation.
Most business buyers want a business on the way up, so if your numbers can prove that your business is steadily growing, you will be very attractive on the business market.
Not there yet? Most businesses can improve their numbers by taking a fresh look at marketing and streamlining costs. If you want to sell in the next few years, begin implementing changes that will show growth.
A Hot Industry
This has less to do with your individual business than with the nature of the market, but regardless it can be a big bonus for a seller if your type of business is the one everyone is looking for.
Not there yet? If you’ve considered selling, but don’t know when the time will be right, pay attention to market trends. If your type of business becomes a hot commodity, you don’t want to miss the window to sell.
The Only Show In Town
An obvious advantage as a seller is to be the only business in your industry in your area. Your monopoly will be a great selling tool, as buyers interested in your industry will come only to you.
Not there yet? The way to become a local monopoly, if you aren’t one already, is to make strategic buys of all of your competition. If this strategy is not a possibility, look for ways to differentiate yourself from the competition. This will not only be great for your bottom line, it will be appealing to buyers as well.
The most important point to remember is that your business will only sell for what a buyer is willing to pay for it, so try not to get hung up on your listing price. If you are not quite ready to sell, but thinking it may be a possibility in the future, now is the time to start implementing changes that will appeal to buyers down the road.
Are you a business owner who is getting ready to sell, or thinking about putting your business on the market in a few years? Do you want to see what kinds of changes could help your buyer-appeal? Please feel free to leave us a comment or question here and we will be happy to get you answers.