What should you do in order to Maximize Your Sales Price when selling your business?

1. Know your worth.

You want to sell your business for a profit. Obviously.  

But you’re not going to fool anyone. If your business is worth chicken feed, then no sane buyer is ever going to pay a premium price for it!  

As eager as you are to take your earnings and retire in luxury, you have to be realistic about the TRUE WORTH of your business' value..  

Here’s where you enter the bean-counting realm of business appraisers. A competent appraiser will be able to determine how much your business is worth and determine a realistic market price you can sell it for.

Don’t be scared of getting a business appraisal. Prospective buyers will either ask for one or order one themselves in the due diligence period; so you might as well have an INDEPENDENT VALUATION to show them. You’ll gain credibility by doing so.  

What’s more, you’ll know personally if you’re in a good position to sell now. 

If the prospect of selling looks financially abysmal, you can either...

• lower your expectations, or 
• take a year or two to get the business profitability and sustainability into better condition, or
• get outside professional coaching assistance to do a health check on your business, and recommend the changes necessary for a successful sale.

2. Choose the right time to sell.

With real estate - location is everything. When selling your business, timing is everything.  

Sadly, selling your business often only becomes an option for many owners when their business if facing bankruptcy, staring down legal challenges, or cannot stop hemorrhaging money. 

Selling the business at a huge profit is completely out of the question. Your only prospective buyers will be specialists in distressed business purchasing, and they will be eager to wring every last cent of saving from the deal.  

When is the magical “right moment” for selling? 

It’s when your business is doing well. A business that is firing on all cylinders is when it is enormously appealing to investors. The better the business is doing at consistently making money, the higher the price you can sell it for.  

Business buyers know that there’s going to be a learning curve as they acquire a new business. Investors realize that there will be some slow down as management changes hands. If you can prove that the business is operating like a well-oiled money-making machine, you’ll be able to sell at a wild price.  

Take into consideration market conditions as well. 

• Is your industry in a bubble? 
• Are interest rates low or high? 
• Are consumers spendthrift or skittish? 
• The economic status is another critical factor in the timing of the sale.  

It all depends on the when.

3. Spruce up your brand.

Any deal-sniffing cashed-up investor or legitimate business buyer is going to do something that anyone is going to do if they are considering a purchase.  

They’re going to "Google" you and read the public reviews on your business!

Deals don’t start in a corporate conference room. Deals start when a prospective buyer sits in front of their computer and types in the search bar “Your Company Name.”  

What are they going to see?  

Thankfully, you get to control that. The better your brand looks online, the better you’ll be able to sell your brand to someone else. 

Here are some of the features that will make your brand stand out:  

• Appearance - At a minimum, make sure you have an attractive logo, consistent branding, and a polished look. Your personal brand matters, too.
• Visibillity - Does your brand even appear in a Google search? If not, it may be worth it to focus on your search rankings first.
• Integrity - If the first thing that appears in the search results are scandal headlines, class action lawsuits, or scam reports, you have a problem on your hands. A brand that is attractive to buyers is a brand that possesses integrity.
• A loyal following - Social accounts are a must-have, but the activity on those social accounts is just as important as having them. Are you posting regularly on the social media platforms like: Facebook, Twitter, LinkedIn, Pinterest, Google+, and Instagram. Buyers are purchasing your customer database, not just your office space and inventory. Make sure you can prove a loyal customer base to all your potential buyers.

4. Know & promote your selling point.

• What is your business really good at? 
• What is it that makes it attractive to prospective buyers?  

Identify this trait, and maximise it.  

Usually, a buyer will have a single reason for their interest in buying your business. Yes, they may say that it “fits the criteria,” or “there are a lot of attractive features,” but really, there’s one standout feature that makes it an ideal acquisition for them!  

Your job: Find out what that feature is.  

That single glistening selling point is going to depend a lot on the buyer. Every buyer comes to market with a set of specific goals. The more closely your business aligns with those goals, the more appealing it will be.  

As a business owner, you have a responsibility to know the buying market, thereby gaining a greater understanding of what makes a for-sale business attractive.  

Here are some particularly powerful generalised selling points:  

• You have a loyal and motivated team of employees.
• You have an extremely valuable brand.
• You possess a piece of unique technology or innovation.
• You have a huge social media tribe.
• You occupy an ideal niche in the marketplace.
• You are located an ideal geographic location.
• You have a stellar team of switched-on managers.
• You possess good gross profit margins that will provide great cashflow and great aftertax profits.

The better you can direct attention to your favourable selling points, then greater the interest a buyer will have in your business and NOT in someone elses!

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