How to mximize business value during the sale

posted on 14 September 2022
Cum să maximizezi valoarea afacerii în timpul unei tranzacții
Expert broker de afaceri - Cosmina Sandu
Cosmina Sandu
Brașov - Romania
+4 0755 548 634

Selling your business is a huge decision - perhaps one of the most important decisions you will ever make in your entire entrepreneurial career.

Although it is not the only factor, the selling price will definitely be one of the most important factors that will lead the discussions with potential buyers.

As with most interactions in life, you will never have a second chance to make a first impression, and there are specific things you can do to maximize your business' value during a buy-sell transaction.

Start planning your business transaction early

One of the most important steps that any business owner can take in the life of the company is to plan a possible sale or retirement in advance. In other words, setting the exit strategy and treating that last chapter of the business plan responsibly will decisively influence the way such a transaction takes place. The exit will happen, whether you want it or not; the question is whether you want to be prepared or if you prefer to leave things to chance.

This is essential if you plan to sell your business in the next few years, but it’s also important if you plan to keep your company long-term, as planning can help you smooth out any unexpected transitions due to illness, death, or sudden change of one's life goals.

Pre-sale planning is a multi-layered issue; It means making sure you have implemented the right processes and hired the right people to keep your business running smoothly, whether you're leaving or taking a step back from the business environment.

Identifying potential issues and eliminating business process hiccups, so that everything runs smoothly, will help increase the potential buyer's confidence in the business and will therefore contribute to maximizing its value during a business sale transaction.

Proper planning also involves ensuring that all I's are dotted and that T's are crossed in terms of documentation and ensuring that your company's financial situation is in order, which demonstrates transparency and helps the due diligence process unfold at a faster pace.

It is also never too early to start working with a business broker, who will help you make an assessment and discuss the implementation of strategies that can help you get the most value when you decide it is time to sell your business. This will also help you get an idea of the ​​current industry and market trends, and to show you the value of your business in the broader market context. 

Understand what buyers look for 

As part of the planning process, experienced business brokers, such as the ones in your team, will help you visualize your business through the eyes of a potential buyer and provide guidance on what a buyer wants and how to increase your company's attractiveness.

It is important to understand what business buyers want and that different buyers are looking for different things. In general, buyers would like to buy a company that they can develop, build up or use to diversify their services or current product line. They would like all the things touched on above - including a strong management team, financial transparency, and issues to be identified, resolved, and addressed before the agreement. Business buyers also want to make the most of an excellent opportunity. A company with the ability to demonstrate a path of growth and profitability is sure to satisfy potential buyers and the owner can definitely maximize its value during a business transaction.

Have a clear vision

Buyers are also drawn to transactions in which the business owner has a clear vision of where the company should be and how to get there. Owners are often so consumed by daily tasks that they fail to plan a strategic direction for the future. It is essential not only to plan but also to invest in people and business processes to get your company on the right track to success.

If you are seriously considering selling your business, working with a company like TradeX - Business Brokerage from the very beginning of the process, you will be able to better address all these factors, as well as think about your own sale process objectives and needs. Would you like to completely sell all your shares and move on or would you rather be involved to some extent? Do you have a vision of what type of buyer they would like to sell to? Have you considered certain KPIs that must be met for the sale to take place?

An experienced consulting team can help you solve all problems that may arise during the sale, as well as after the completion of the transaction.

By planning ahead and planning well, you will be able to minimize risk, maximize value, control the process, and make sure you get out on your own terms and conditions when time comes to start the next chapter of your life.

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