When selling a business, how do you get the most value out of your investment? It’s all about how attractive your business is to potential buyers and what they are willing to buy your company for. Here are some of the factors that can affect how your business is perceived among prospective buyers:
Financial performance. Well-run companies with strong financials have a distinct advantage in the selling process. Cash flow is of particular concern. Debt levels are another important factor. Many businesses have failed due to inadequate cash flow and high debt levels.
Industry growth. Is the industry your company is operating in growing, shrinking or evaporating? Your company’s long-term prospects in its industry are important in determining its value.
Customer satisfaction. Are customers happy? What is your customer retention rate? Is it increasing, decreasing or staying the same? Customer retention is an important factor in the long-term success of a company.
Management team. Does your company have quality mid-level managers? Are the right people in key positions? What is your company’s reputation in its industry?