Selling a business and getting a good priceAt some stage you will decide on selling your business and want your best price. There are a number of factors that will influence your business's value.
When a business is being appraised by a perspective buyer he/she will be weighing up these factors when assessing the price. Obviously the Buyer wishes to close the deal at the lowest possible price, however most will also have a top-price, beyond which they will walk.
Plan your exit well in advance by having a sale-strategy to ensure you get the best price for a business. Key characteristics that add value; strong cash flow, good history and reputation, growth industry, competitive advantage, niche business with room for growth, good plant/location/systems, good staff.
Characteristics that may lower its value; Distressed business, poor industry outlook, price cutting, weak financials, small customer base, key relationships held with owner, poor records/systems/plant. Attending to these long before you put your business on the market will ensure you get your best possible price.
For more information on how to get your best price when selling a business phone Richard on 03 337 0005.
If you're preparing to Sell Your Business and would like a copy of our "Seller checklist" to help you build the value & get more, then find out more on selling a business and getting a good price from the links below;
By Richard O'Brien - nzbizbuysell
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- The business sales process
- How to list a business for sale and sell
- What do business buyers want?
- Options when selling a business
- Marketing a business for sale
- Valuing a business for sale
- Difference between profit and value
- 5 Questions before you sell a business
- Selling a business and getting a good price
- Advertise to target your business buyer
- Why have a business exit strategy?
- Ad images for better business sales results
- Why use a business broker
- Get more when listing your business for sale
- How to keep your business relevant
- 12 questions to ask a business broker