How To Sell Your Business At A Profitable Price
Posted by Zuliana Dsouz on March 16th, 2016
In today’s modern era, not every business owner is able to survive cut-throat competition. For such entrepreneurs, the business cycle can be short-lived and they may have to shut down their entire business model due to financial crunch or other outlining factors. Consumer needs are longer the same. What interests them today, might not grab their attention tomorrow. Not to forget the fierce competition faced by many business owners, which propels them to exit the industry, much sooner than determined. However, it is not necessary for a business to thrive for decades, until new strategies and business models are not accepted, but there are many business owners who still manage to reap profits and sell their business at a profitable price. As a business owner; you constantly must make adjustments, face down the competition, and manage change with resilience, but are you truly ready to capitalize on what may be the greatest financial transaction of your lifetime, or have you compromised your position with procrastination?
Even if you are not planning to sell or exit now, an opportunity or a need to exit could come and go before you have time to properly react and consider all options. It is critical to be ready and engage heads-on with the business sale process from the start. Strategic buyers are proactively looking for companies to acquire, regardless of whether the company is being proactively marketed. Consequently, it is not uncommon to be approached by a potential acquirer and be faced with an opportunity that may not come around again. One place to start measuring your company’s potential value is determining your EBITDA; or simply, earnings before interest, taxes, depreciation, and amortization. Before, you decide further, you must know what is the EBITDA in terms of selling your business? As per the equation, subtract expenses from revenues (excluding interests and taxes) without depreciation and amortization. The remaining number paints a basic picture of your profitability index as well as your ability to pay off what it owes.
Taking preemptive steps towards planning your exit or expansion enables you to react from a position of strength and capitalize on an unexpected opportunity. Nowadays, a lot of industry giants are always on a lookout for strategic mergers and acquisitions to have a competitive edge over others. When you have decided to sell off your business, keep a close watch on your M&A intermediaries and ensure that all aspects of a transaction are addressed properly. If you are looking for M&A specialists in New Jersey, USA, you will find many. You can now look for M&A consultants with several years of experience and professional acumen to help you make the right business decision.
About the Author
The author is an avid blogger. In the above article, she talks about selling your business at a profitable price. For more information visit : www.sunmerger.com