Business Broker | How To Sell Business In Bad Economy


http://www.whitehurst-ma.com: Mergers & Acquisitions, Business Broker | selling business in bad economy

What do business owners need to do if they are looking to sell their business in a bad economy? If a business owner were only going to sell their fixed assets (fixtures, furniture, and equipment), then that business owner certainly would not need me as a business broker. All they would need to do is get a valuation on those assets and put them on the chopping block and sell them.

The biggest single aspect of sell price of businesses is the goodwill value of the business. And today more than ever, that goodwill value needs to be substantiated to buyers. Business buyers are obviously a little bit skeptical about the future of our economy. Buyers are going to be, perhaps, more astute at analyzing the infrastructure of the company: the things that make up the goodwill value of the company.

Some of the things that business owners can do in getting ready to prepare their business for sale:
- Managerial tools in place (being used/quantified)
- Procedure manual
- Training manual
- Formalized sales program
- Marketing plan

Many business owners like a procedure manual and have a marketing plan, but it's in the back of their head. If a buyer, a prospective buyer, can sit down and look at a marketing plan and see where that business can be taken and that the markets have been identified, even the customers have been identified and how, and that that sales marketing plan is in place and being used and it has been used, and it can be quantified as how effective it is, is a big step in being able to show perception to that buyer that there is a goodwill value in that business and that the business is going to be a good prospective business to buy in today's market.

For more information, please contact us directly:

Whitehurst Mergers & Acquisitions
9330 LBJ Freeway, Suite 900
Dallas, TX 75243
972.238.0700

Whitehurst Mergers & Acquisitions
Business Broker
Dallas, Texas

http://www.whitehurst-ma.com

Comments

6 Responses to “Business Broker | How To Sell Business In Bad Economy”

  1. Anonymous says:

    From my Sales, Inventory Management, Logistics, and Military Experience I
    learned the value of step by step training manuals for an organization or
    team.
    In the military we have standard training, instructions and procedures for
    everything and it creates a unique synergy when executing large scale
    operations with huge teams.
    The first thing I did with my company was separate each system of the
    business and create two type of manuals for that system.
    One for Planning, and One for Operations of that system.
    Managers, team members, contractors, employee’s who operate within those
    systems will then have a reference on how to effectively execute the tasks
    within those systems.

    This adds great value to an organization and also helps to track and
    correct the day to day operations of your business.

    If you incorporate your financial data into the planning and operations
    manuals for expense tracking it also helps your organization gain financial
    insight into the advanced cash flow mechanisms within each system.

    Our company is able to break down the cost of each element within a system,
    per task measured. This type of measuring and planning is essential to
    physical production based revenue systems.

    If one is selling assets built into a system, those manuals will give the
    buyer greater insight on how to better utilize the asset, reduce the cost
    per task, and incorporate it into their systems.

    We are selling off some operational assets this year and are very glad to
    have taken the time to create manuals for those operations. This increases
    the sales value of those assets.

    Mark A. Bartholomew, Managing Director
    Newport River Management, LLC.

  2. Anonymous says:

    Bill, you make some excellent points about selling a business. Often a
    business owner know their business so well, that they don’t document
    everything, but when a preparing for sale having everything written makes
    the sale of the business significantly more smoothly.

  3. Anonymous says:

    Thank you for offering your good advice to us in this video. This topic
    often comes up in our Mastermind meetings and I am glad you laid out some
    clear steps for people to consider. I have reposted it on our “Small
    Business Help & Info for Entrepreneurs” Facebook page. Hope that brings
    even more people to your video.

  4. Anonymous says:

    Bill I enjoyed your video. It’s well thought out and educational.

  5. Anonymous says:

    Excellent tips on selling in the current down economy, I’m sure working
    with you is a great start!

  6. Anonymous says:

    This video provides sound advice for Sellers when “good will” becomes the
    main ingredient of a company’s value. Buyer confidence is increased when a
    Seller can present well-thought-out written documents such as an Operations
    Manual, a Sales/Marketing Manual, etc. (Author Michael E. Gerber, in his
    “E-Myth” series of books, expounds upon this concept in greater detail.)

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