Profits and losses are obviously important to the value of your business, but a number of other factors play a role as well. It's always the right time to consider ways to increase the value of your business, whether or not you are thinking of selling. If you have questions about business valuations or the seliling process, please give us a call.
Sincerely,
Bob Dale & John Austin
Austin Dale Group
512-327-0427 |
|
More Than Numbers
You're considering selling your business or just wondering what your business is worth. Your accountant or financial advisor has reviewed your profit and loss statement, and told you what she thinks your business is worth. Is this a valid figure? Do the numbers reflect the real value of your business?
Below are some other factors to consider regarding the true value of your business. These factors may not have a specific dollar amount attached to them, but they certainly influence the valuation and the likely selling price.
- Are you serious about selling, and is it the right time? (Use this only if selling is the reason for the valuation.)
- What are the two or three biggest obstacles to growing the business?
- Why is your business different than the competition?
- If you don't own the real estate, what is the status of your lease?
- What is the short-term and long-term trend of your business and the industry?
- Does, or can, international competition affect your business?
- Why do customers patronize your business, or why do clients use your services?
- Have you increased or decreased prices recently, and if so, why?
- How much will you need to invest in your business over the next three to five years to maintain your customer base? How much to increase it? How will you spend it?
- Are there any legal or governmental issues facing the business?
- If something happened to you, is there someone else who could run the business?
- Can the business be relocated? Should it be relocated?
- What are the secrets to the current success of the business?
- What prevents the business from growing?
- If the business is based on your personal goodwill with customers, knowledge of the product or services, etc., are you willing to stay for a fairly long period of time to assist in transferring this personal goodwill?
- If you were given a large amount of cash to invest in the business, and you were younger, what would you do to grow the business?
|
|
Thinking About Selling?
Here are some tasks business owners should consider completing before going to market to help their businesses sell.
- Remove any items not included in the sale. That family portrait behind the counter should be removed.
- Remove or repair any non-functioning equipment.
- Prepare an operations manual to show a new owner all the functions of the business, how things are done, the major customers and suppliers, marketing materials, and any other information that would help a new owner manage and operate the business.
- Take care of any outstanding bills and resolve any legal, tax, or governmental issues.
- Bring your financial statements up to date, and have your accounting professional prepare them for a buyer's inspection.
- Assess your intellectual property and take steps to protect it with patents, copyrights, and trademarks.
| |
|
Exit Strategies
Contact us to learn what we can do to help you plan for the future.
|
|
Contact Us
Austin Dale Group
512-327-0427
| |
