Harry and David revolutionized the way things were done in their industry. When they came on the scene, no one had ever seen anything quite like the world they created. In their first year alone, they moved over a million units, received numerous awards, and were number one in their market.
Harry, however, could never seem to get what he was after…which is exactly the way David designed it. No matter how hard he tried to succeed, David made Harry’s life difficult at every turn. It almost seemed like David wanted him to die! In spite of their differences, however, they had a very profitable business relationship for nearly 30 years.
Over the past couple of months, we’ve been taking a deep dive into the process of selling your business, ending with today’s post on how to close the deal. We’re pulling back the curtain on exactly how we at Southard Financial help you find a qualified buyer for the company you’ve built.
Note: In case you’re just joining us, this is Part Two of a series on how to sell your business. Before reading this post on marketing your business, take a couple of minutes and read Part One: Getting a Valuation if you missed it.
After securing an accurate valuation, the next step is to begin letting potential buyers know that your business is available. No one can buy your business if they don’t know it is for sale. There are several simple and direct ways to do this:
Welcome to the first post in a 3-part series on How to Sell Your Business.
So, you’ve got a business that you want to sell and you want to get the best possible price for your business. How do you get that price? How do you know what your business is worth? You need a solid valuation!
Would you rather sell your company for 3x or 10x EBITDA?
That’s a big difference, and one worth putting serious thought into.
Let’s say you have 2 companies. Both generate $25 million in revenue and $5 million of profit a year. Company 1 has an owner with complete control of all areas of the business and no management diversification. Company 2 has great management diversification and its largest customer is only 2% of its revenue.
Both companies might sell. But Company 1 will bring in much less than Company 2. Let’s look at some key factors you can take control of now to help you sell like Company 2 later.