Congratulations! You’ve made the decision to sell your business – a significant step towards a new chapter. Whether you’re pursuing retirement, seeking fresh challenges, or ready to hand the reins to someone else, Axon & Associates is here to guide you through the process every step of the way.
Naturally, a crucial question on your mind is, “What is my business worth?” While we can’t provide an exact answer without assessing your specific details, know this: Axon & Associates goes beyond simple valuations. We delve into your business’s unique strengths, growth potential, and market trends to arrive at a realistic and achievable selling price. Remember, the true value lies not just in financial figures but also in your company’s story and future possibilities.
Before diving headfirst, take a moment for introspection. Ask yourself:
If you’re halfway through the current year, make sure you have last year’s figures and tax returns, and also year-to-date figures. Make sure all of your financial statements presentable. It will pay in the long run to get outside professional help, if necessary, to ensure these documents are thorough and accurate.
You want to present the business well “on paper” and give prospective buyers insight into your cash flow. This includes the profit of the business, as well as the owner’s salary and benefits, the depreciation, and other non-cash items. Not everything is dependent on your bottom line.
Notes If you’re like many small business owners, you’ll have to search for some of these items. After you gather all of the above items, you should spend some time updating the information and filling in the blanks. Have all of the above put in a neat, orderly format as if you were going to present it to a prospective purchaser. Everything starts with this information.
Insider Tips The big question is not really how much your business will sell for, but how much of it can you keep? The Federal Tax Laws determine how much money you will actually be able to put in the bank. How your business is legally formed can be important in determining your tax status when selling your business.
For example: Is your business a corporation, partnership or proprietorship? If you are incorporated, is the business a C corporation or a sub-chapter S corporation? There are also tax rules that impact certain businesses on seller financing. The point of all of this is that before you consider price or even selling your business, it is important that you discuss the tax implications of a sale of your business with a tax advisor. You don’t want to be in the middle of a transaction with a solid buyer and discover that the tax implications of the sale are going to net you much less than you had figured.
Understanding your potential buyers is crucial. Here’s a breakdown of common buyer types:
While each buyer is unique, here’s a general profile of an ideal candidate for your business:
Beyond financials, presentation matters. Here’s how to make your business shine:
Create a clean, professional environment that reflects your brand and instills confidence in buyers.
Streamline processes, document procedures, and ensure seamless transitions for potential owners.
Clearly communicate what makes your business unique and attractive to buyers.
Address any potential issues upfront, and be transparent about your business’s strengths and weaknesses. Building trust fosters a smoother negotiation process.
Not all buyers are created equal. Avoid those solely driven by short-term gains or unrealistic expectations. Axon & Associates can help you identify and attract qualified buyers who value your business and its potential.
Selling your business requires careful planning and expert guidance. Axon & Associates offers a comprehensive range of services to navigate every step:
Ready to start the selling process? Contact Axon & Associates today for a free consultation. We’ll answer your questions, address your concerns, and provide a personalized roadmap to achieving your selling goals.