Harvest Business Advisors are Business Brokers for the Lower Middle Market Market. Harvest specializes in selling engineering, technology, and medical companies from our Columbia, Maryland and Princeton, New Jersey offices.
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- When preparing to sell your business you must realize that, Timing is Key. Namely the best time to sell your business is when the stock market is doing well, banks want to finance business transactions, and your business shows robust growth and profits.
- If you are in a cyclical industry like construction supply or specialty subcontracting there can be wild valuation swings due to variances in your operating results, your prospective buyer results, and available financing.
- Roll-ups come and go. Roll-ups are when a large company or a private equity group is trying to create a new or larger regional or national company. They consolidate many acquisitions. They often pay ABOVE market to generate quick sales. If you get an offer from a group doing a roll-up do NOT view it as your normal market value. It is your value at that time and your value is likely to be less once the prospective buyer spends their money or the economy changes.
- For market sales you must “Productize” your business. Namely find out what your best buyer groups want and treat your business like a product. Try to give your buyers what they want.
- You need to understanding what buyers must have and what they absolutely will not buy.
- Always remember, it’s not the past, but the future that interests prospective buyers.
- You still need key managers even if you buyer has a large staff. In fact in many cases a few good people will greatly enhance your value.
These are a few things you must remember when preparing for a market business sale. Timing does count.
Clients choose Harvest Business Advisors for our accurate business valuations and our consistent ability to deliver the highest price in the smoothest sale transaction possible. Harvest provides business brokerage, business valuation, and business succession planning services. We have extensive experience in the information technology and professional services, manufacturing, distribution, and contracting fields. We maintain offices in Maryland, New Jersey and Virginia. Connect with us at email@example.com or 443.334.8000 to discuss selling your business, ordering a business valuation or buying a business.