There’s a little known secret to getting a higher valuation for your business: experience. It’s as simple as you knowing your business and having a business broker who knows your market.
You journey towards putting up your business for sale begins with a partner who is your consultant in the selling process. By engaging a business broker early in the process, you’ll not only have access to expertise in the sales process, but experience in readying a business for sale and maximising the value of the business opportunities on offer.
Engaging the Experts
Buyers will put more scrutiny into the purchase off a business than almost anything else they’ll buy in their lives. A small business is an extremely personal, emotionally exhaustive and time-consuming career that requires passion and conviction.
However, when you’re looking to value your business, you need to take out a great deal of emotion and look at the tangibles.
Your assets can be extensive if there’s real estate and multiple employees involved. Staff members who have been with your company for a long time bring with them experience and knowledge that is as valuable as machinery or the real estate where your business is located. A reputable business brokerage can determine whether the true value of this experience can increase the value of your business.
The income generated over the life of your business can be as important as recording the revenue of the past three years. An increase over time can demonstrate a long-term growth trend, which isn’t always apparent in an evaluation of the last three years of your business. Taking this into consideration can increase the valuation of your business by forecasting revenue increases over time.
The goodwill you have with your existing customers has a high value, but just as important is the goodwill you build within the community. Sponsorship of local sporting teams or ongoing involvement in charitable causes or schools is working to build long-term relationships and goodwill with future customers. When you’re looking at valuing your goodwill, consider evaluating the long-term benefit of supporting your community.
Getting More out of Your Business Brokerage
A good business broker is your partner in the sale of your asset and will not only get you the best price for your business, but will make sure that all the details are addressed in the sale of your business.
From advising on the valuation of your business through to the sale and your next move, a business broker can be critical in not only getting you the best sales result, but helping you to move on into your next career or retirement.
For a business broker you can trust, contact LJ Hooker Business Broking or call 02 9552 1111 (9am – 5:30pm Monday to Friday AEST) to speak to an expert business broker.