August 8, 2011: by Travis Kellett
Eleven Value Drivers That Increase the Sale Price of a Business (Part 3 of 3)
We will end this series by discussing Value Drivers 9 through 11 which are:
With better performance in each of these areas, the greater the chance your business will sell at the higher range of the multiples normally associated with your industry.
Value Driver #9: Review Your Assets
Take the time to review and take action on the following:
Value Driver #10: Curb Appeal
Take a critical look at the following areas, ensuring they are in top condition, before the sales process commences.
Value Driver #11: Get Good Help
Critical members to this team include, a lawyer to protect you in the legal aspects of a sale, an accountant to assist with any financial due diligence and tax issues, and a financial planner to assess the impact of the sale on your investment portfolio. Lastly, a business broker is key to lead the business sales process, keeping the deal on track and managing the details of the sale.
It is critical to assemble a team of advisors you can rely upon as this team of people can make or break a deal. Each advisor has a specific role in the transaction and should be working on behalf of their client to achieve the objective for which they were engaged.
Your advisory team should provide knowledge, quick advice, and ultimately help to keep the process on track. However, you are the ultimate decision maker in the deal.
Communication between all of the parties involved is a priority to prevent the deal from dying. Each advisor should clearly understand the wishes of their client. As long as all advisors on the team understand the desired outcome, it is highly probable that the efforts will produce the results you are looking for.
That concludes our discussion on value drivers. Remember that value is what is perceived through the eyes of a buyer and not about what it is worth in the current owner's hand. By focusing on these key areas, your chances of selling your business at the price you want are much greater.