“Your Margin is My Opportunity”
Jeff Bezos Amazon Founder & CEO
Business owners will often state that they plan to sell their business at a certain age or after they have achieved a certain level of sales or earnings. More oftenthey will decide it is time to sell after the business has taken a hit to earnings or a major customer has left. Try as you may, you cannot always control what is going to happen in your business. However, after sales have dropped is of course precisely the wrong time to sell your business. Buyers like to see consistent earnings, margins and growth. Most buyers, despite their claims, are not turn around artists and are reluctant to write a check unless they feel the bottom is in.
This applies to buyers from within the industry and new entrants. At the very least today’s buyers want to see stable revenues and earnings with the thought of being able to grow the business with new ideas, products or marketing techniques.
With competition coming at you from all angles it can be difficult to see where your business will be in the future or what it will be worth. Businesses that were once impervious to the Internet and foreign competition have found themselves under attack. Ask any owner of a NYC Taxi Medallion. The medallions were once thought to be a “sure thing.” Buyers that paid $1,000,000 just a year or two ago find themselves with an asset worth 50% less today. Thank you Uber. While society may benefit from the breaking up the Taxi Monopoly, what about the owner who was banking on selling his medallion and retiring?
Transworld can help you exam your options. We can assist you in preparing you & your business for sale. We know that moving on can be extremely difficult and only you know when it is the precise time for you emotionally & financially. Hopefully the two will coincide. Call us today for a free consultation (732) 741-7024 or email email@example.com