Hallmark Business Brokers offers pertinent information below to those thinking about selling their businesses within the next two years. It is crucial to start considering the factors below at the present time in order to bridge the way to successful sales.
Business Valuation
Educate yourself regarding the probable price you will obtain for the sale of your business through an immediate business valuation. Knowing the value now will save you the potential shock of discovering that your business is not worth nearly as much as you had thought. Hallmark Business Brokers can calculate your business valuation and assist in pinpointing any risk factors and also improve areas that can enhance the value of your business. Having the valuation in advance will allow you time to make any corrections needed for when you are ready to sell.
Important questions to ask yourself are as follows:
Financial
What kind of company do you own?
Established businesses are often set up as C Corporations which get taxed around twice the rate of S Corporations during the time of sale. Consult with your accountant to find out about switching to an S Corp in order to save a notable amount of tax dollars.
Are your business records organized and all in one system?
Your bookkeeping records must be thorough and completely visible to an auditor in order to reap the highest possible sales price. Looking into this aspect at the present time will save you headaches down the road.
Do you currently own any real estate?
If the answer to the above question is yes, your financial advisor can tell you if a 1031 exchange is a smart idea in order to suspend capital gains taxes.
Client Cluster
Do a small number of clients account for the majority of your sales?
If so, your business will probably have a decreased value. Growing your pool of customers prior to selling your company will raise its recognized value.
Staff
Are you or another staff member critical in order to run the business?
If your business requires one person to handle everything in the company, this will be a deterrent to potential buyers. By allocating important responsibilities to a number of individuals in your management staff, the company will continue operating smoothly if an otherwise “one-man show” employee in charge of operations, finance, sales, and marketing resigns.
Reputation
Do you have a good reputation with your longtime clients?
Having a trusted reputation is a valuable benefit to your business. In the case that you have not been on the best of terms with any clients or the community as a whole, now is the time to work on repairing unfavorable relationships so as not to negatively affect your potential profit.
Hallmark Business Brokers is conveniently located at 230 S Tamiami Trail S, Suite 2, in Venice. Our respected team provides top-notch, unsurpassable service to our clientele. Kindly reach us by calling 941-445-4726.