I want to sell my business. What value does it have in this present market ? What could I expect to receive in terms of money ?
Strategic buyer or private investor ?
This year, your business will achieve capital lost !
The selling price of a business might vary according to the region, the number of years of operation, the profits of past years ( are they constant or is there any lost )? If you've had good profits during the past 5 years and that you are showing loses in this present financial year, this won't necessarily have an impact on the selling price of your business. The reasons explaining why these loses occurred will be studied objectively.
The 80/20 Rule says that 20% of your customer base will generate 80% of your business sales ?
The value of your business is defined by the past and the perspective that will bring the future. The nature of your business, the quality of the products and services offered by your business and the number of clients in your customer base will be considered in establishing the value of your business. For example is there 2, 3 or 4 customers generating 80% of your business sales.
Never forget that if you are asking too high a price for your business, this might discourage potential buyers.
Many business owner are asking too high a price at the beginning of a selling process which results in frightening these potential customers. A serious buyer might think that you are simply not realistic ! And that your knowledge of your industry is lacking. We must never forget that any business that is too high a price will have those investors run away, while a reasonable price will attract them. It is then, that the serious negotiations might begin and materialize by an honest transaction where the seller of a business will be happy and that the buyer of this enterprise will also be satisfied. It is a fundamental. We must remember that offering a business at honest value is the single most efficient way to sell your enterprise
What is the timeframe to sell my business ?
The timeframe require to sell a business will depend on the optimization of the selling process. By integrating, all the incontournable steps (evaluation, fiscal aspect, preparation of the business profile, meeting with potential buyers, studying all offers, audit, final formalities). According to our experience, the selling process of a business will demand a time range of 5 to 12 months. For all that to succeed, the project must be realistic and the process optimize.
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