• How Attractive Is Your Business to Buyers?

    Assess how your business may be viewed by potential buyers, and what that could mean for value.
  • Does the prospect of selling your business trigger a sense of relief or happiness?*

  • Selling a business is the combination of financial and personal decisions. You may fear losing your identity, facing the process alone, or have trouble relinquishing control. 

  • Does the business run well without your daily involvement?*

  • The real goal before selling is to make yourself replaceable. Buyers see risk if the business doesn't function without the owner. 

  • Do you lack capital to continue to grow the business?*

  • A lack of capital (or the desire to invest in the business) can constrain growth.

  • Have you received unsolicited offers to buy your business?*

  • Unsolicited offers can indicate your business is in an attractive niche desired by buyers.

  • Do you have capacity and/or scalable operations?*

  • Lack of capacity or ability to scale can shift buyers from thinking about growth to existing cash flows. It can limit a valuation somewhat, but a business is still saleable.

  • Do you have recurring revenue?*

  • Predictability and cerainty always equal high buyer interest and valuations. Repeat customres and high retention are fabulous characteristics that increase valuation multiples.

  • Do you have a customer that represents more than 25% of revenue?*

  • A single customer that represents more than 25% of revenue can be sold, but it will reduce your overall valuation. Long-term contracts and/or history of stability can help.

  • Do you have a strong successor to step into your role?*

  • You can sell a business without a strong successor but be prepared to stick around to transition the business, especially if you are considering a sale to private equity.

  • Do you have three years of accurately prepared financial statements?*

  • Not having clean financials can derail your sale process by creating trust issues with a buyer. An accountant or an investment banker can help you prepare your financials for a sale process. You may also consider a Quality of Earnings (QofE) report.

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