0295521111

How to get a higher valuation for your business.

Selling Businesses July 26, 2016

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.

Assets

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.

Income

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.

Goodwill

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.

No Tags

  • Ethical Business – People before Profits

    by on October 16, 2016 - 0 Comments

    Businesses around the world are increasingly operating under a model that uses holistic techniques and strives to be ethical. Called holistic businesses, these organisations consider the impact of every process when developing policies and procedures. This is opposed to focusing on specific components, such as profit. Ethical business practices involve ensuring the highest legal and […]

  • A Good Broker, a Good Accountant & a Good Lawyer

    by on November 11, 2016 - 0 Comments

    Starting a business can be intimidating. You need money to live on, money to buy equipment and money to pay staff; all while finding customers and complying with the relevant laws. Lawyers and accountants are expensive, which can make it tempting to forgo these services to reduce your costs. This would be a terrible mistake. […]

  • What is EBITDA for Your Business?

    by on January 2, 2017 - 0 Comments

    Having a reliable measure of your business’s financial health is important to ensure its viability and its resale value. EBITDA (earnings before interest, taxes, depreciation and amortisation) is an accounting technique that offers a standard measure of profitability. Unlike other net income calculations, which use simple formulas like revenue minus expenses, EBITDA allows analysts to […]

  • 5 Mistakes to Avoid When Buying a Business

    by on September 3, 2016 - 0 Comments

    It easy to fall into any number of pitfalls when you’re buying a business for the first time. After all, you’re ready to be your own boss and take charge of your destiny. You’re excited to build value from an established business that looks successful and has a great balance sheet. As business brokers with […]

  • Is a Franchise Worth Your Investment?

    by on August 26, 2016 - 0 Comments

    Buying into a franchise can be a successful strategy for building wealth. You can create value within an established, branded enterprise and benefit from established processes and best-known methods. Similar to any small business opportunity, make sure the franchise is a good cultural fit and skills match. Buying a Pizza Hut probably isn’t the best […]

© 2021 LJ Hooker Business Broking. All Rights Reserved.