If you are a local business owner in Austin, Texas and want to know how to sell your business, you should give us a call whenever the idea initially pops in your head. Why is this? Often, people selling their businesses come to us after it is too late to improve anything about their business. We can help this process. We know what business buyers like to see and the steps that it will take to get the highest possible valuation for your business. Part of this is easy and we can walk you through a few steps here. For instance, the number one question on a business buyer’s mind is how consistent is the cash flow or seller’s discretionary earnings in the business. Meaning, what is the likelyhood that this cash flow will repeat itself after the seller is gone. If the answer is that the seller really is most of the business, then thi will make a business buyer shy away from the purchase of the business. So, with our help or by doing it yourself, the best bet is to set up some second level management in the business. What is that, you ask? In a nutshell, this means managers and hopefully experienced ones. Do you have a sales manager or an operations manager? For a business buyer, who often know little about your business, this is a crucial element. They do not want to see the business fall apart, the customers leave, and the net earnings fall apart, once they take over the business. So, knowing how to sell your business is a crucial step along the way. Rememeber, you know this business inside and out, your buyer will likely not. Why would anyone buy a business that they know nothing about? It is because they have some interest in the industry, but go caught up in a corporate job or the like. So, they want to buy the dream. They just don’t want to flush their money down the toilet. Help them succeed and you will get a better multiple on the business. If you want to know how to sell your business here in the Austin, TX area, please give us a call.
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