Commercial Business Sales Spring Valley – Increase the Value of Your Business

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

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."

Financial Statements and Controls

Owner Transfer Process

Deal Structure

The Sales Process