Figuring out how to sell an advisory firm is a process that is filled with crucial decisions and questions. Just like you came up with effective strategies to build your firm, you will need a solid plan for a successful exit. Part of learning how to sell an advisory firm is working closely with a business broker for advisory firms Orange County trusts. You will also need to get questions to top questions sellers ask. In this post, our focus will be on the questions you must answer before getting your business listed.
Which business broker should you hire?
There are so many business brokerage firms that promise the best support when selling a business. You must not, however, take their word for it. Prior to hiring a business broker for advisory firms Orange County recommends, pay attention to the type of businesses they sell. Have they sold advisory firms that are of the same size and in the same industry as yours? You also need to consider their success rate. A good business broker should have a high success rate. So-Cal Business Brokers, for example, has a proven success rate of more than 90%.
When should you sell your firm?
The mistake business owners make is that of selling because they have to. If you are not being forced to sell, you should sell your advisory firm on your own terms in order to maximize return on investment. The best time to sell is when the firm is still in the growth stage. This is unlike when you have to sell quickly. In this case, you will have to accept a lower offer.
How much can you sell your firm for?
To answer this question, you will need a business valuation. This is a professional assessment done to determine the real value of your business. The value of your firm will also be determine by its location, size, philosophy and the number of existing clients. Advisory firms are valued within a range of 60 to 80 percent of annual collections. You need an experienced business broker for advisory firms in Orange County to help you with the valuation. Your business broker will further help with pricing.
As you can see, a lot goes into the sale of an advisory firm. There are many more questions sellers ask. To avoid mistakes and guarantee a successful sale, work closely with a business broker who specializes in the sale of advisory firms. Their input will help you close fast and for the right price.