Transworld Business Advisors Cleveland West – How to Sell My Business?
The Business Buyer Pyramid
When you are selling your business, you need to think like a buyer would. That means you need to understand what the buyer is going to be looking for. If you follow the business buyer pyramid, you can learn what most buyers look for when looking to purchase.
Seller's Discretionary Earnings
The number one thing that buyers are going to look at is the cash flow of the business, also known as the seller's discretionary earnings.
Desirability and Strategic Value
The next thing the buyer would look at is the desirability and strategic value of your business. This includes knowing the barriers your business faces, who are the competitors in this industry, does this business have a niche or unique concept that the buyer can expand on.
Level of Risk
Then the buyer wants to know the level of risk- can the business run without you, the current owner? They will also want to know what cycle is your business in, is it a start-up, is it growing, is it a mature business?
Terms
The last part of the business buyer pyramid is the terms. How much capital will they need to purchase the business? Are you willing to finance any part of the sale? That is always a bonus to the buyers as it shows confidence in the business itself.
Why Are These Questions Important?
If you are looking to sell your business, it is essential to know the answer to these questions before the buyer asks them. It will help facilitate the process and make the buyer, and you feel better in the long run.
Contact Us to Learn More
If you are considering selling your business we make the process easy. Simply call Mike Snider at 440-628-4440 or email Mike at [email protected] Mike will conduct a confidential preliminary discussion with you to ask some of the following basic questions:
- How long have you been in business?
- What industry? What does your business do?
- What size is your business? Estimated Annual Revenue?
- What is the profitability? Estimated Annual Net Income?
- What is the reason for selling?
- What type of entity, and who are the owners?
After the brief exchange of information and if there is mutual interest, a free no-obligation consultation will be offered. We prefer to do this face to face at a confidential location, but during social distancing, we offer confidential online meetings as well.
That's all, at the Free consultation meeting we will be able to provide additional information on the Transworld selling process and free information on the opinion of business value.
Call or email Mike Now: 440-628-4440 [email protected]
