Business owners are usually so focused on the day-to-day responsibilities of running and growing their business that the question of selling it may not get a lot of thought. As a business owner, you might even feel lost about the best time to sell a business, and how long the process of selling can take. Luckily, experienced brokers can help business owners evaluate their goals, market, and growth while offering helpful advice about the best time to sell. While the ideal time to sell a business is when the business is performing well, and the national economy is strong, there are still plenty of things you can do to make your business as attractive as possible to potential buyers. Read on for some of our tips for finding the best time to sell a business.
A reliable broker will start the selling process with an analysis of your business. With crucial information about your business and your goals, it’s a good idea to start by promoting your business and marketing. This marketing is key, as starting with this can help you reach the right type of potential buyer to make the most of your sale.
Build Market Value
There are several things you’ll need to address when preparing to sell your business. In order to build market value and make your business more attractive to potential buyers, start standardizing your business procedures and eliminating potential liabilities. You’ll also want to do some research: read up on any leases or contracts and stay informed on their transferability. This will make the selling process a lot simpler. Sprucing up your business location will also make a good impression. Lastly, get your financial statements in order. It’s a good idea to have clean and verifiable financial statements available for the last three years.
Improve Free Cash Flow
Free cash flow is a key metric used to evaluate a business. There are several things you can do to improve your free cash flow, including small steps like reducing unnecessary inventory and collecting outstanding receivables. It’s also a good idea to renegotiate contracts with key suppliers to more favorable terms. This can help make your business more attractive to buyers and improve marketing efforts by maximizing the value of your business for sale. A reliable broker can help you take these steps and more to find the right buyer (and the right price) for your business.
Sell With Atlantic Business Brokerage, Inc.
At Atlantic Business Brokerage, our mission is quite simple; we help sellers sell businesses, and buyers buy businesses! Over the past 30 years, ABBI has facilitated the sale of countless commercial properties, businesses, and franchised locations. With our unparalleled knowledge of the business purchase and sale industry and our network of contacts, we offer services to both buyers and sellers that no other brokerage firm can match.