South Jersey Business Brokers: Article About Can Your Advisor Increase Business Value
As a business seller you likely have a lot of important questions like how the business broker maintains confidentiality, markets your business, conducts due diligence and secures the sale. However, there is one question that is most important which is what can your business broker do to make your business more valuable.
Here are 5 ways that your South Jersey business brokers can increase the value of your business.
Advising About Your Financial Books: Your financial books need to be well organized and easy to understand for buyers. They should also accurately reflect the profits of your business. Your business broker will work with you to make sure that your books are in order before presenting them to interested buyers.
Advising About Your Customer List: A diversified customer list is important to potential buyers. Buyers view customer diversification as insurance that the business will continue to run profitably even if a large customer were to leave. A broker will evaluate your customer list and advise you about ways to diversify your customers to bring stability to your business operations.
Preparing and Presenting a Strong Seller Memorandum that Attracts Buyers: Developing an effective Seller Memorandum requires skill and experience. A Seller Memorandum should answer buyers' questions and explain the cash flow of your business and discuss future potential and available opportunities. Your broker has experience with creating Selling Memorandums and knows how to attract a qualified buyer.
Creating the Right Exit Strategy: Have a plan and follow through with it. Creating an exit strategy allows you to exit your business at the right time for the best possible profit.
The business brokers from Selby Associates of South Jersey would be happy to answer any question you have about business mergers or business acquisitions.
Your business broker will work with you to make sure that your exit goals are met and that you achieve the price that you want for the sale of your business.
Finding the Right Buyer: An experienced business broker not only knows how to effectively and confidentially market your business but also has contacts that might be looking for a business like yours. Your broker will work hard and conduct a wide search for the right buyer who will purchase your business at the maximum price.
Establishing a Common Goal to Sell Your Business for the Highest Possible Price With Your Broker: Discuss your business in detail and provide relevant information like financial records, contracts, customer, vendor, supplier, payroll information, etc so that your broker can determine the value and review specifics of your business. Remember that you both desire the business to sell for the highest price.
Before you work with a broker, understand exactly what that person is going to do for you and is the broker you're considering hiring experienced with your type of business. Before you decide whether or not to hire a business broker, you need to understand what they will do, how they will help you increase the value of your business, how they will present your company to potential buyers, how many contacts they have, what is the asking price for your business, and what kind of time frame do they estimate it will take to complete the transaction.