Business Broker for Engineering Companies San Diego – How to Make Your Company More Valuable to Buyers

When getting an engineering company ready for sale, you can do some obvious things to make it more valuable. This includes diversifying your customer base, finding more suppliers for your raw materials, improving the condition of your equipment, and so on. Following a business valuation by a business broker for engineering companies San Diego trusts, you will have a list of all the things you need to improve on to make your company more valuable. Here are some of the things you should do to make your company more valuable in the eyes of potential buyers.

Work on your corporate structure

To get your engineering company ready for sale, a business broker for engineering companies San Diego trusts will recommend working on your corporate structure. In this case, the business broker will work with a tax advisor to develop an appropriate corporate structure. The structure should be in line with what you want to carry out.

In the sale of a company, several corporate factors will need to be considered:

A holding company forms the corporate structure
The inclusion of real estate in the engineering company
Sale of assets instead of shares
Dividend policy before the sale

Before commencing the sale, you must have a tax plan for the operation between 6 and 12 months. You also have to consider the family factors that may affect the sale. You need to identify any family conflict early before getting the company listed.

Improve your workforce

Buyers will want to take a look at the conditions of your employees. They will want to be certain you have the right team in place and that they are compensated properly. Therefore, it is paramount that you have all the employees regulated. You also need to analyze the possible employment of freelancers or partners who offer services to your company. Any possible source of problems with your workforce can derail the sale.

Moreover, your company must not be over-dependent on you. You need to bring in a team to take over your responsibilities.

Have a clear company strategy

Investors are not attracted to improvisation. Your company strategy must never be defined ‘on the fly’. You need a clear strategy on where your company is, where you want it to go, its objectives, and the means to attain those objectives. You need a strategy plan that has all these and a business plan for the next 3 to 5 years. Your business plan must not generalize; it should be specific.

While making your company more profitable before the sale is important, taking the aforementioned steps will increase the chances of a successful sale. You must also not do it alone. Work closely with a business broker for engineering companies in San Diego. Their input throughout the sale will be invaluable.

Business Broker for Engineering Companies San Diego

What Client’s Say

We Couldn’t Be Happier

"When we thought about selling we had no idea what our business was worth or how to go about selling. What you were able to do was to cut through the fog so that we understood the valuation issue and had a comfort level with the process. As you know we ended up selling for somewhat more than the original valuation and we got all cash and our CPA loved the way our tax liability was minimized. We couldn’t be happier!"

Over $250,000 More

"Our first contact with you shocked us when you suggested that we wait 18 months before selling because you believed that if we hit our projections that the value would be significantly greater. As it turned out we not only followed your advice but also got slightly over $250,000 more than we originally had hoped for. It is seldom that we have had the opportunity to deal with a firm that doesn’t want both money and a commitment NOW. It was clear and obvious that you had our best interests at heart."

You Got the Valuation We Agreed On

"You did a great job on the sale of our business in really beating the bushes for buyers, including a UK company that was an active suitor. You managed to get the valuation that we had all agreed upon and got it substantially all in cash and got the transaction closed with little to no problems or expensive lawyers involved."

Thank You for Handling Our Business

"Our business was smaller than what your firm normally handles but it was a BIG part of our net worth and savings. Thank you for handling our business and we were very pleased and delighted with the results."

More Than Anticipated

"Our transaction was involved as we had different corporate entities located in different states. Our only regret is that we didn’t retain your services before 2012 when we paid $25,000 to a firm in Texas that did a valuation and market analysis for us before then failing to do anything in the way of trying to sell our business. You got it sold for more than anticipated."

Work on your corporate structure

Improve your workforce

Have a clear company strategy

The Sales Process