Though it takes a great deal of perseverance to found and maintain a business, selling one is not so easy. At any given moment, 25% of all U.S businesses are up for grabs. Despite the legacy and accomplishments they leave in their wake, few business owners know what they are worth and often over value their businesses. Because of this, businesses tend to stay up for sale indefinitely.
Here’s the Rub
After a long and storied career as entrepreneurs, most business owners aspire to sell their companies, pay off their debts, and retire comfortably. Much as owners may feel that they deserve this, the valuation of a business is a hard science, based on historical and projected profit performance and value enhancing characteristics of the business. In order to understand what drives value, it behooves a business owner to seek out the services of a firm like Calder Associates.
Long before initiating an exit plan, business owners should be thinking about their sales performance. If they want to entice a premium valuation from buyers, they’ll need to prove their business has the potential to sustain itself and grow. By conceiving of new strategies for sales and marketing, or designing new products and services, businesses can maintain their competitiveness and attract prospective buyers who are prepared to pay a premium for a growing company.
Be Ready and Patient
Sometimes businesses sell when they’re ready to sell; other times there are no options left. According to a 2016 online Harris Poll, almost 50% of business owners don’t have a succession. This lack of planning doesn’t enable the business to be adequately prepared for the unexpected, such as disability or loss of a leader. Even when the owner is ready, the entire process of preparing, marketing, and closing a business takes anywhere from 12 to 24 months. In some cases, this process may even extend beyond two years; depending on industry, the state of the market, and size of the company in question.
The Selling Process Itself
The process of selling a manufacturing, distribution or service business between $5m and $50M in sales is complex. The M&A Professionals of Calder Associates are experienced advisors and consultants who get deals done. They have a proprietary M&A Process designed to find the right buyer and the right deal for business owners who want to see their businesses continue to succeed under new ownership. Calder Associates is the best bet for any business owners who want to sell their businesses confidently and confidentially.