Have you considered putting your company up for sale? Here’s a guide to getting the greatest deal.

A business sale can be challenging. You’ve invested years developing your brand and amassing a following of devoted clients; now it’s time to make sure you get the best possible price for your product. On the other hand, you need to maintain realism about the worth of your company and keep emotion out of the way of a good transaction.

To assist business owners in accurately valuing their company and ensuring that it doesn’t sell for anything less than it is worth, ZH Consultancy provides a helpful valuation guide. We’ve compiled our best advice for getting the best price for your company with the least amount of hassle.

Value Your Company Fairly

You want to maximize the price of your company as much as you can given that the median firm selling price is increasing by 6% annually. Pricing your company too expensive, though, might scare off potential customers and cause it to languish on the market for too long.

You may use one of three methods to appropriately assess your company: the asset approach, the income approach, or the market approach.

The asset strategy concentrates on the NAV of a corporation (net asset value). With this approach, all of the company’s assets—including real estate, furnishings, machinery, and intellectual property—are added up before liabilities are subtracted. Since it ignores potential earnings, this approach is better suited to failing businesses.

The income strategy, on the other hand, entails figuring out the present net worth of the company’s income. The current value of the firm is then calculated by projecting the future cash flows. You should have a general estimate of your company’s value based on the fact that many firms sell for five to 10 times their EBITDA (earnings before interest, taxes, depreciation, and amortization).

You may also attempt the market-based strategy. When the selling price is compared to revenue or earnings, this provides a projected price based on the market demand and the price of enterprises that are comparable to yours.

With the assistance of a financial advisor and industry expert, it is best to combine these three approaches into a single methodology to accurately value your business.

Set Up Your Accounts

Nobody wants to invest in a company that isn’t in order. Make sure your financial statements and management accounts line up by going through your financial records carefully, and if required, enlisting the aid of an accountant. Having solid and open accounts can increase your company’s credibility and win over any possible buyers.

Increase Brand Awareness

The buyer of your company in the future wouldn’t purchase it if they intended to create their brand from scratch. Develop yours to make your company as appealing to potential buyers as possible. Acquirers opt for businesses with a strong brand and market presence.

Utilize social media and digital marketing to build a strong brand presence, make the most of your USPs, and develop a distinctive tone of voice. The greater the price a consumer is ready to pay, the more established your company is as a distinctive player in the market.

Consult A Professional

You can sell your business without outside assistance, especially if you’re doing it to a known buyer, but less seasoned business owners may want to hire professionals to ensure they obtain the greatest price when listing their company for sale.

A broker typically receives 10% of the sale price of a business with a sub-$1 million valuation. This fee can seem expensive, but by handling the hassle of selling on your behalf, brokers can free up your time while you continue to operate your business. A broker may also be able to negotiate a lower price for you in many cases.

The Conclusion

The first step in selling your business for a great price is to have it properly valued, and BusinessesForSale.com is full of practical valuation advice, including a guide to valuation and a useful tool called Value Right.

Don’t let profits, brand recognition, or productivity decline while you’re trying to sell your company; the more successful it is, the more appealing it will be.