When it is time to sell your business, you definitely want a big payoff. You don’t want after years of growing your business to end up selling it at a loss. To guarantee chances of success, you should involve a business broker 92105 throughout the process. A business broker has the same objectives as you. They want you to sell fast and for maximum profit so that they can make a good commission. However, even with the help of the most experienced business broker, it is imperative that you answer the following key questions before you initiate the sale process.
Can my business be sold?
Any business can be sold. The difference is how much you will end up getting for it. There are many elements of a business that make it attractive to buyers. Your business broker 92105 will tell you that the best businesses to sell are those with:
- A solid history of profitability
- A competitive advantage in the market it serves
- A large and loyal base of customers
- Long-term contracts with clients
- Great growth potential
- Great brand loyalty
- Has intellectual property rights
- Has issued patents
On any given day, there are many businesses that are being sold. The difference in how fast they sell depends on the aforementioned elements. Buyers are interested in unique businesses that are doing really well. It is also good to note that the best time to sell is when your business is doing really well. That is when it is more attractive to potential buyers.
What is the worth of my business?
You cannot sell for a maximum profit if you have no idea how much your business is really worth. For you to know how much your business is worth, you need a professional business valuation done. An experienced business broker in San Diego will be able to help you with this. When you know the real value of your business, you can then set a fair selling price. Keep in mind that a price that is too high or too low will be perceived as a red flag by serious buyers.
The value of a business is determined by compiling several factors including:
- Market outlook
- Net book value
- Fair market replacement value of equivalent operating assets
- Value of intangible assets such as industry reputation, goodwill, and brand image
You have to answer the above two questions if you want to achieve a successful sale of your business. Next, you need to leverage the expertise of your business broker in San Diego. Find someone that has sold many businesses that are similar to yours in size and industry. Never hire a broker with a low success rate. The ideal broker should have a success rate of 90+%.