- April 28, 2017
- Posted by: admin
- Category: Exit Planning, Sell Your Business
When selling your business, you naturally want to present it to buyers in the best light possible. Just like you would never upload photos of a car for sale covered in dirt and with half its bumper missing, you should note details that may serve as red flags to possible business buyers before listing.
To help pull down those red flags and make your business appear as tempting of a prospect as possible, try to put the following four strategies into motion:
Leave Behind a “Dream Team” to Replace Your Role
The last thing most investors want to do is purchase a business from someone who is the apparent lifeblood of that business’s success. If, currently, you worry about going on a long vacation in case things fall apart when you are gone, that serves as a signal that you need more leadership and management training for your upper level staff.
Work on building leadership and management skills through coaching and workshops. If need be, you may need to bring new people onboard who already have these skills and the needed experience. Ideally, you will be able to point to a team of efficient, inspired leaders that can help the new owner manage operations smoothly during the transition.
Find Ways to Make Your Earnings Statements and Accounts as Attractive as Possible
To increase the likelihood of a sale, your accounts and earning statements must make a stellar first impression. To accomplish this, you may have to clean up your accounting practices or the way information is presented so that value can be demonstrated clearly. Your accounts should never represent an inaccurate picture, but at the same time you will want to find ways to make them look flattering.
For instance, if you have revenue streams listed separately or you automatically deduct overhead from certain income statements, then you may want to retool everything. That way the total revenue is listed as a clear, solid number for the period in question. Similarly, if you have a lot of debt entrenched into one area of your business, you may wish to pay off this debt as much as possible or refinance so it appears like less of a liability.
Put Clear Systems and Procedures in Place
Repeatability is the real engine of success among modern business. Any business can have a great quarter when the stars align, but the best businesses stay afloat because they have the systems and procedures to ensure repeatable results even during a relative dry spell.
Work on putting all your ideas and regular practices into clear writing, including how you can make certain decisions or allocate company resources. If someone can read this guiding document and understand the ingredients that go into your business’s “secret sauce” for operations, then they can feel confident that they will obtain the same results after the business changes hands.
Work with a certified exit planning advisor in Las Vegas
No amount of general advice can help a business truly prepare for a sale. You will need tailored strategies and guidance that acknowledges the specific strengths and weaknesses of your situation to get the best results.
To help you get to this point, you can talk to a certified exit planning advisor and licensed broker-salesperson in Las Vegas, like Jamie Schwartz of Schwartz Strategy and Valuation. She can help you determine ways to maximize your valuation and enhance the image and appeal of your business before you list. Start now by contacting an exit planner today at 702-278-1346.