Selling a business

The “Potential” Value of a Business

When selling your business, buyers are going to consider and analyze every variable before they agree to anything on paper. One of those variables that is always at play when selling a business is potential value. A buyer will want to know if the assets that he is purchasing will ultimately return profits in the future, and he or she will want assurance that they are not making a bad investment.

They will want to look at your books and see the past trends of growth and decline. They will want to see every asset and liability the company is currently holding. They are also going to want to know every possible long-term projection regarding the company. A buyer is making a huge investment, a potentially life-altering decision that is no less than the decision being made by the seller.

This is why it is important for a seller to prepare and document every aspect of their business before even considering an attempt at negotiation. A seller should also consider current trends in the market of the industry in which the company is doing business, as a profitable company running efficiently can still be affected by industry-level economic decline.

A seller has every right to know if he will get returns on the investment, as they are looking to expand their company with the resources that buying your business will provide. The seller has a bottom line that must be maintained and buying a business that will eventually go under is not an action that he will want to take.

Selling a business is not easy, which is why you should not do it alone. Contact Broker Matcher today and we can begin that process!

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