As a seasoned business broker, my approach involves a meticulous analysis of each business through the eyes of a potential buyer. This perspective is crucial, especially when preparing a business for sale.
It’s about conducting a thorough, critical examination of the business, highlighting its strengths while equally acknowledging its weaknesses. Buyers are typically attracted to aspects like consistent profitability, scalability, a strong team of employees, and efficient operations. However, they also carefully consider potential risks such as the likelihood of key employees leaving, the ease with which competitors can enter the market, and shifts in market dynamics.
In valuing a business for sale, I ensure that I balance these positives and negatives. I’ve often noticed that many business owners view their ventures through rose colored glasses, focusing solely on the potential and expecting brokers to market this vision. However, our role is more grounded in reality; overemphasizing potential can actually turn off potential buyers who are wary of being ‘sold’ on a concept rather than a concrete business plan.
The essence of successful deals lies in reaching a mutual agreement where both the buyer and seller feel the price is equitable. This necessitates that sellers adopt the buyer’s perspective, understanding their concerns and expectations. It’s not just about selling a business; it’s about facilitating a fair and transparent transaction that satisfies the aspirations of both parties. This approach is vital for a sale that feels right to everyone involved.
The Author Anthony John Rigney is the Broker and owner at Quorum Business Advisors. If you are a business owner considering selling please contact us for a free initial consultation.