How to Get Higher Purchase Offers
The sooner you start preparing for the sale, the more time you'll have to increase the value by implementing the following strategies.
INVEST IN MARKETING THE BUSINESS FOR SALE
Most buyers find the business they want from "for sale" websites. There are more than 100 good sites out there! The more exposure you get, the more buyers you will attract, and the higher your asking price can be. (Contact us for FREE advice on listing your business on your own.)
OFFER SELLER FINANCING
Yes, you'd prefer to receive all cash at closing, but most buyers prefer to pay part of the purchase in payments. Buyers are even willing to pay more for the added convenience. Why not raise the price and add on a little financing?
KEEP IMPECCABLE BOOKS AND RECORDS
Buyer are impressed by carefully organized financials, customer lists, inventory lists, employee and vendor lists. Get organized. It's a good investment of your time prior to a buyer asking for these records.
NORMALIZE YOUR BOOKS
"Normalizing" is the process of adding back into your bottom-line profitability anything the business owner receives as a direct benefit of owning the business (also called "owners privileged"). For example, if the business pays the owner's truck payment of $400/mo, show the added $4,800 annual figure as added profitability. (Contact us for FREE advice on normalizing books.)
MAKE YOURSELF IRRELEVANT
Build the business run without you. It will make it easier for a new owner to take it over. Transfer your responsibilities to your team members and software automation. Buyers will pay more for the opportunity to chose what tasks they take over in the business.
HIRE A BROKER
I've seen several studies comparing "for sale by owner" transactions with brokered deals. On average, brokers are able to get around 20% more for the sale of a business. (Click here to see our broker services.)
The longer you can wait, the more likely you'll find a buyer willing to pay a premium. Average sales take around 6 months from listing to close. Plan on at least that amount of time to maximize your sale.