According to BizBuySell’s 2018 Q1 Insight Report, there was high demand for companies in North Carolina and throughout the nation. However, there are many steps that business owners should take if they are looking to get the most money from a sale. In some cases, maximizing a company’s sale price starts by founding or buying a company in a sector that is growing quickly.
As part of a business plan, is it worthwhile to create an exit strategy that is reviewed on an annual basis. If necessary, business owners should create a succession plan as part of that strategy to leave the company. Insurance policies can be used to fund a buy/sell agreement with partners, which can facilitate a timely exit from an organization. Ideally, a sale will be timed for when the current and future prospects for the company and its industry are bright.
When the right buyer is found, it is often best to take the deal and walk away from the company. This is because there are a multitude of variables that can make a company less valuable, which could result in lower future offers. To increase the chances of getting the right offer, owners may want to bring multiple buyers to the table. Using add-backs can make the business seem more profitable, which may result in multiple bids for a company.
As a general rule, business transactions are complex events that can take patience and attention to detail to execute properly. An attorney may be able to help with the process of finding a buyer or reviewing a purchase offer. The attorney may also be able to answer any questions a business owner has about selling a company.