By Eric Landis, M&AMI, CBI, CBB
*When is the right time to sell my business? *Anytime, depending on your financial and personal circumstances. In the case of healthy companies with revenues exceeding $15M today's market is offering business owners liquidity with high multiples through private equity buyers. For companies with revenues under $15M financial and strategic buyers are offering business owners liquidity by combining various financial instruments, including seller financing.
*How can I get a buyer to pay more for my business? *Consider two prospectives. Value enhancement and buyer profiling. Determine your company's present value and Identify value drivers that can significantly increase appeal to buyers. Management team, systems, cash flow, and customer base are the first ones to look at. At the forefront of value analysis in today's market is the green factor. There are several ways to be green. LEED certification is certainly one of them but there are simpler green measures: going paperless, green cleaning, purchasing recycled products and furniture. They key to remember is that going green is a process not a onetime single event.
To get a copy of our article detailing the benefits of green business, entitled "Go for Green", visit our website.
*Should I grow through acquisitions prior to my sale? *Targeted acquisitions can be significant value drivers. By acquiring companies, you are adding revenue but not necessarily additional expenses. As a result you are increasing the profitability of your company, which leads to a higher selling price. See case study below about PBC's on successful growth through acquisitions.
*What to do with my underperforming company, is it still sellable*? Don't panic. Performance issues can be remedied with simple review of your current practices. There are many ways to maximize profitability without layoffs and cutting corners. There are also different types of sales to consider. If you are unable to drastically increase the profitability of your company but you have significant equipment, IP or other assets tangible or intangible, an asset sale may be appropriate and lucrative.
*Can I sell the business myself? *Sure, but it's not recommended. For most people their business is their single most valuable asset. As a business owner, you need to maintain your concentrated focus on running your business with the goal of continued success. Selling a business is a full time job and requires a professional intermediary to dedicate their time, resources, energy and effort to complete the intricate and lengthy sale process. For a complete explanation of the sale process visit our website.
*Landis & Associates *has demystified the business sale process. Our proprietary methodology of value enhancement and unique positioning of our client companies achieves the maximum price that the market can bear. Our success is based upon the quality of our associate professionals, the depth of our experience, and our commitment to excellence. Eric Landis is the president and founder of Landis & Associates, Inc. a Business Sales & Acquisitions firm in Newport Beach, CA.
Eric holds M&A Sources' highest designation of Merger & Acquisition Master Intermediary (M&AMI), held by fewer than 100 individuals worldwide.
There's a green business revolution that's taking place, but it's only at its infancy. For more information on how to: Acquire | Grow | Sell *GREEN *visit: www.landisandassociates.com