Business Broker Orange County - What Factors determine if a Business is Sellable?

A business broker Orange County can sell any type of business. The only difference is how much he sells it for and how soon the deal closes. If you are thinking about selling your business, it is good to understand the factors that determine how sellable it is. With that knowledge, you can make your business more attractive to buyers. Here are the main factors that determine how sellable your business is.

Financial performance
The first thing buyers will want to look at is the financial performance of your business. The better and more consistent the recent performance is the more enticing the business will be to the buyers. It is for this reason that business brokers Orange County take more time getting your business ready for sale before listing it. It can take up to three years to get your business ready for sale because the primary objective of the business broker is to improve its financial performance.

Growth potential
Nobody wants to invest in a business that will nosedive in a matter of months. That is why a business valuation report is always requested. The report helps the buyer to understand the current standing of the business, its past performance and future projections. If it is on a trend that guarantees growth, it will be more attractive.

Switzerland structure 
This is a structure in which a business doesn’t overly depend on a single customer, employee or supplier. The ideal business is one that will continue to flourish even after losing a customer, supplier or employee. One of the main duties of a business broker Orange County when getting your business ready for sale is to ensure your management structure is sound and that the business does not rely on the input of the owner. It should be able to flourish under new management. The broker will also ensure that you don’t rely on a single client. There should be multiple income streams. The business must also not rely on a single supplier.

Hierarchy of reoccurring revenue
Business buyers don’t want to spend their money on seasonal businesses. They want a business that will continue to make good money regardless of the season. To do this, they look at the hierarchy of reoccurring revenue. For example, businesses that deal with alarm systems sell for premium prices because they have monthly reoccurring business.

Other factors that will affect how sellable your business is include customer satisfaction, business’ independence from the owner, monopoly control and the industry it is in. Working with a good business broker will help you transform your business into the most attractive venture possible.

Business Broker Orange County