Over the past couple of months, we’ve been taking a deep dive into the process of selling your business, ending with today’s post on how to close the deal. We’re pulling back the curtain on exactly how we at Southard Financial help you find a qualified buyer for the company you’ve built.
Note: In case you’re just joining us, this is Part Two of a series on how to sell your business. Before reading this post on marketing your business, take a couple of minutes and read Part One: Getting a Valuation if you missed it.
After securing an accurate valuation, the next step is to begin letting potential buyers know that your business is available. No one can buy your business if they don’t know it is for sale. There are several simple and direct ways to do this:
Welcome to the first post in a 3-part series on How to Sell Your Business.
So, you’ve got a business that you want to sell and you want to get the best possible price for your business. How do you get that price? How do you know what your business is worth? You need a solid valuation!
Would you rather sell your company for 3x or 10x EBITDA?
That’s a big difference, and one worth putting serious thought into.
Let’s say you have 2 companies. Both generate $25 million in revenue and $5 million of profit a year. Company 1 has an owner with complete control of all areas of the business and no management diversification. Company 2 has great management diversification and its largest customer is only 2% of its revenue.
Both companies might sell. But Company 1 will bring in much less than Company 2. Let’s look at some key factors you can take control of now to help you sell like Company 2 later.
The market is hot, buyers aren’t skittish, interest rates are low, and your business is really doing well. According to most business appraisal experts, this hypothetical moment would be the perfect time to sell your business.
But not so fast.
There are often overlooked aspects of a business that can significantly lower its value when the time comes to sell. These six risk characteristics can actually hinder your ability to realize the maximum value of your business.
David A. Harris and Mark A. Orndorff spoke at the 2019 Annual Fall Conference of the New South Chapter of The ESOP Association held in Orlando, Florida on October 16-17. They gave a presentation titled “Can Employees Really Impact Company Value?”
David A. Harris and Matthew L. Jakes spoke at the 2019 Spring Workshop of the New South Chapter of The ESOP Association held in Atlanta, Georgia in February, 2019 on the topic of “Valuation Appraisal Checklist – 10 Things Your ESOP Appraiser Should be Doing”
David A. Harris spoke at The Fall ESOP Forum of the NCEO (National Center for Employee Ownership) held in Albuquerque, New Mexico in October, 2018 on the topic, “Communicating Valuation: Tools, Tips, and Examples”.
David A. Harris spoke at the 2018 Annual Fall Conference of the New South Chapter of The ESOP Association held in Birmingham, Alabama in September, 2018. He led a workshop called “The People’s Roundtable Interactive Workshop – A series of ‘Build to Last’ activities that focus on developing successful communication and team building programs for employee owners of all generations.” Speakers included Dolores Lawrence, Blue Ridge ESOP Associates; Lindsay Baublitz, SCandH Capital; David Harris, Southard Financial LLC
Mark A. Orndorff spoke at the ESOP Nuts and Bolts Seminar of the NCEO (National Center for Employee Ownership) held in Indianapolis, Indiana in August, 2018 on the topic of “What’s Your Company Worth? – ESOP Valuation.”
Mark A. Orndorff spoke at the American Booksellers Association Winter Institute 2018 held in Memphis, TN in January, 2018 on the topic of Succession Planning titled “What is Your ‘End Goal’?”
