Sell a Business

Read more about a recent transaction.

As ebusinessappraisals.com sees it, selling your business, besides being an obvious exit strategy, presents the bigger opportunity of expanding the business into a nationally-recognized brand, or a more diversified company, i.e. adding more products or services so that the experience becomes almost a one-stop-shop. The influx of resources resulting from the acquisition of your company can make all of that possible, and the prospect is just too good to pass up especially if you have envisioned that for your business from the start.

But where do you begin? For starters, consulting with an experienced mergers and acquisitions firm can spell the difference. Our company’s more than twenty years of advising and deal making has made it exceptionally adept at making sure your business is sold for maximum value.

Our company has a successful track record of having sold businesses to the best matched buyers in the market; successful enough to have earned a mention in The Wall Street Journal about the acquisition of one of our  clients (Florida Tire) in the automotive industry.

To determine the appropriate price tag for your company, it is necessary to know how much your business’ value is at the time of its selling.

We consider five classic approaches to the valuation of your company:

• asset-based
• income-based
• capitalization of earnings
• present value of discounted future earnings
• comparable business sales

These methodologies give us an overall perspective on the worth of the business, from which we begin developing a range of potential values. Using the judgment we have derived from years of assisting in actual transactions, we then focus on the areas we believe will be considered the most relevant by the marketplace. This combination of insights then translates into a final, baseline valuation of your company.

We review the following financial data, which includes the past three years of:

• accrual-basis income statements
• financial reports
• accrual-basis balance sheets
• tax returns
• off-balance-sheet assets
• accounts receivable aging
• depreciation schedules
• equipment appraisals
• property/building appraisals
• leases and lease holdings

Preparing the “Corporate Valuation Analysis” entails an initial interview with the Financial Analyst, with follow-up questions from the FA. If you have a complex business or more than one business, you may need to spend additional time.

During the initial interview we accomplish the following:

• review financial statements
• discuss improvement opportunities
• review business operations
• identify major competitors – national and local
• identify major vendors
• identify any customer who represents more than 10% of your sales during any of the last three years
• assess profit centers
• discuss industry trends
• evaluate growth potential
• seek ways to enhance value
• assess strengths, weaknesses, opportunities and threats
• review marketing literature
• review organizational chart

Our experts’ attention to detail aims to cover all the bases to ensure you get the best value for your business. The whole process also prepares your company to be highly desirable to prospective buyers who have the means to make your goal come true, be it for yourself or your business.

To know more about selling your business, contact us at 866-663-5806, and one of our professionals will assist you.