Selling a business here in Austin Texas is a worthwhile goal for many business owners. This liquidity event is the result of a lifetime of hard work. We here at CGK Business Sales are business brokers Austin TX. Many companies cannot be sold. Either the business is in a niche business that will not draw much interest or the owner IS the business. This means that the seller takes on too many functions within the life of the business. How do we correct that? We build some structure around the business. Meaning, we set the owner up with some consulting to help prepare the business for sale. This way, when the business is ready to be sold, it becomes much more attractive to a potential buyer. Private equity calls this second level management. For instance, is there a sales manager or an operations manager? Or does the owner handle all of these functions? Unlike many firms, we are patient and will only take a business to market when it is ready.
Other factors to consider are business valuation. We look at the last three years’ worth of business tax returns, income statements, and balance sheets. If available, a statement of cash flows is very helpful to certain types of buyers. For instance, private equity buyers like to see the level of capital expenditures, so they can measure a true level of cash flow. Once we digest the information, we can get a good sense of what the business valuation might be. We will need to ask further questions to get an adjusted level of EBITDA, but this information is the lifeblood of what your business may be worth to an outside buyer. Other factors include the revenue and cash flow trends. The industry makes a difference, too. Some industries naturally get a higher valuation because they are expected to grow faster and make more than other industries. As business brokers Austin TX, we will prepare your business sale for all possible buyers.