In commercial business sales Spring Valley, the end goal is to sell the business for maximum profit. This is not an easy goal to achieve thanks to the many factors that get in the way. As a result, most small businesses only trade for an average of 2 times Seller’s Discretionary Earnings. The range is 1 to 3. The good news is there are a couple of things you can do to increase the overall value of your business. In this post we will be focusing on the three most important things you should do.

Financial Statements and Controls

When evaluating a business to determine if it is a good fit for them, most buyers focus on the financial statements. These are the documents that show how the business has been performing over a given period of time. Consequently, one of the best ways to increase the value of your business is to focus on your financial statements.

In commercial business sales Spring Valley, having great and up-to-date books and records is the key driver in boosting the value of your business. Your financial records for at least the last three years are what help buyers determine if the business is a good fit for them or not. Your business broker in San Diego will help you get all the financial statements in order and present them to potential buyers in a way that wins their confidence.

Owner Transfer Process

The first question a business broker will ask is this; why are you selling? Your answer helps him know if you are ready to sell or not. Needless to say, the sale process of a business is an emotional one. The last thing a buyer wants is to commit to the sale only for you to pull back at the very last minute. Prior to getting your business listed you should ensure you are emotionally ready to sell it.

Your involvement in the business also matters. If the business cannot survive in your absence, selling it will be hard. That is why you need to take yourself out of day-to-day operations. You also need to hire qualified employees to take over your roles and the document all your systems and processes. Doing so will boost the value of your business because buyers will be confident it will continue to thrive in your absence.

Deal Structure

Last but not least, how you structure the deal will influence how much you get at the end of the sale. Offering such incentives as seller financing enables you to command a higher sale price. Offering to stay on after the sale will also win the confidence of buyers. Your business broker in San Diego will help you structure the deal perfectly.

When getting ready for commercial business sales Spring Valley, these three items will help you sell fast and for the best price. Don’t forget to work with an experienced business broker to guide you through.

Commercial Business Sales Spring Valley