Hiring the best business broker for engineers Orange County is the most important thing you should do when getting ready to sell your business. This is because working with a professional eliminates the guesswork and guarantees you will get the best deal at the end of the day. Once you have hired the right person for the job, you then need to ask the right questions. Here are some of the top questions you must ask.
What is my business worth?
One of the responsibilities of a business broker for engineers Orange County is determining how much a business is worth. This is achieved through a business valuation. The business broker will evaluate your business to determine its sales, profits, growth trends, the value of assets, market position and the available systems and processes. This information is used to determine the fair market value of your business. It is also the work of a business broker in Orange County to help with pricing. In most cases, the final price is achieved based on multiples of earnings.
What are my business strengths and weaknesses?
A business valuation reveals the strengths and weaknesses of your business. Keep in mind the amount the buyer will be willing to pay for your business will depend on its return-on-investment (this is based on the potential earnings for the new owner) and the risk. The lower the risk the better. Buyers look for the following characteristics in a business:
- Predictable and sustainable sales drivers
- Growing or stable customer base
- Established suppliers
- A high percentage of repeat business
- Clean legal history
- A brand with copyright, or trademark
- High growth potential
- Documented processes and systems
When should I sell?
Finding the right time to sell your engineering company is very important. While there is never a perfect time to sell, the best time to get your business listed is when it is doing really well. If that is not an option, your business broker will make some calculations and help you know when you are most likely to get the best value for your business.
Who should I sell to?
You might want to sell to a colleague but will be doing so help you earn maximum profit? This is a question only a business broker for engineers in Orange County will be able to answer. Your broker will also review your reason for selling and help you know if the reason will help win the confidence of buyers or not.