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.