You’ve worked hard for many years building a successful and profitable business. Now, as you prepare to sell your business, the big question is: How much is it really worth? According to The BizBuySell Guide to Selling Your Small Business, what your business is most likely to sell for is based on a buyer’s assessment of financial statements, industry comparable sale figures, asset values, return on investment, and the goodwill worth of your business as a going concern.
Following these 6 key steps will get you on your way to setting an asking price for your business:
Step 1: Get Your Financial Statements In Order. Consult with your accountant or bookkeeper and put together the following key financial statements:
- Income Statement – This should show your gross revenue, costs, and how much your business made or lost each year.
- Cash Flow Statement – This should show how much money was received and paid out of your business and how business assets changed as a result.
- Balance Sheet – This should show the value of all tangible assets owned by your business less the liabilities your business owes.
- Seller’s Discretionary Earnings Statement – This should show how much your business makes after backing out non-recurring and discretionary expenses.
Original post on Inc. by Curtis Kroeker
The sale of a business is a major milestone for an entrepreneur. In fact, your exit-strategy probably has been top of mind for months, even years, and you’ve had ample time to process how the sale will impact your personal and professional life.
But your employees? Not so much. In fact, they’ll be shocked to learn that they will soon be answering to a new boss.
As a compassionate business owner, you want to help ease the transition for your workers. But telling them that you’re planning to sell before a transaction is complete could jeopardize the timing and price of your deal.
So what do you do?
Although there may be unique circumstances that require you to inform all employees about your sale intentions early in the process, it’s almost always better to wait until the deal has closed to bring your employees up to speed.
Read the full article on Inc. here: http://www.inc.com/Curtis-Kroeker/how-to-tell-your-employees-about-a-sale.html
By Curtis Kroeker in The Business Journals | November 4th, 2013
When selling your business, you have the option to either sell it yourself or hire a business broker. Though selling your business is possible, hiring a broker will often ensure a smooth sale and transition from ownership.
“Unlike many small business owners, brokers have years of experience in selling small businesses. They know what works and what doesn’t, making them extremely helpful when Read more
BizBuySell.com Insight Report shows significant spike in business sales for third straight quarter with restaurant, retail industries leading growth.
Learn a few of the most common questions about online business-for-sale listings, and how you can make yours stand out.
Kristal, from BizBuySell Client Services
Posting a business for sale online can be a process that raises a lot of questions. As a member of the BizBuySell Client Services, there are a few common questions I receive every day; Sellers may second guess the words used to describe their business, ask how they can boost exposure for their listing, or call to find out how their listing is performing. In an effort to help sellers get the most value and attract the right buyer, I have created a list of these top three checks to perform once your listing has been submitted to BizBuySell.
Economic indicators and demographics are suggesting an improved environment to sell a business. As the saying goes, “buy low and sell high”, and a recent article on Inc. Why Now’s The Time to Sell Your Business explains why now might be the high-selling time.
BizBuySell recently reported that in the first three months of this year, the number of closed small business sales jumped 56 percent Read more
BizBuySell’s recent contribution on Inc. explained a few of the biggest advantages to using a business broker and asked some of the industry’s leading business brokers to give advice on how owners can find the right broker to sell their business.
Walt Popcock, a small business owner, dreamed of selling his business and traveling around the US in a motorhome. After successfully selling for the full asking price this April, he’ll be able to do just that. Popcock and numerous other baby boomers are fueling the trend of retirees who are seeking professional services to prepare and sell their businesses in order to capitalize on the improving economy.
The Associated Press wrote about the recent spike of listings in the small business marketplace in Retiring Boomers Driving Sales of Small Businesses. In the first three months of 2013, the number of closed business sales jumped 56 percent Read more