After working tirelessly for years, there comes a time in every business owner’s life when they need to retire. Doing this gives them a chance to enjoy the fruits of their labor.
When this time comes, some business owners feel that it’s best to sell their business. Doing this gives them access to a more considerable amount of profit as they enter retirement.
If you own a brick-and-mortar style business, then there are several things that you need to do before putting your establishment on the market. Taking care of these tasks ahead of time relieves you of the future hassle and allows you to focus on what’s most important: selling your business.
Learn How to Value Your Business Properly
For those that don’t know, the term “valuing a business” is used when one needs to evaluate their business’ worth. Doing this gives them a general idea as to what their initial asking price should be and their bottom line.
Depending on the size of the business, the evaluation process can be quite time-consuming. In some cases, it can take anywhere from one to two months. This is because the business owner (or one of the team members) needs to evaluate and/or assign a monetary value to the following:
- Current stock and materials (if applicable)
- EBITDA (earnings before income, taxes, depreciation, and amortization)
By taking the time to learn how to value your business correctly, you’ll know exactly how much you should charge when it comes time to negotiate. This will give you more leverage and increases your chances of getting top dollar for your establishment.
If you don’t feel comfortable doing this yourself, you can hire a third-party brokerage to help you value your business.
Improve Your Facility
Before putting your business on the market, you’ll want to take the time to improve your brick-and-mortar locations.
Several tasks should be dealt with, including:
- Painting the walls
- Replacing old or broken lighting fixtures
- Repairing the plumbing systems
However, few (if any) tasks are more important than getting your roof inspected and, if necessary, repaired.
Most commercial flat roofs have a 25-year lifespan. However, if your roof wasn’t installed correctly, or has been damaged by intense weather conditions, it can become compromised. If you don’t get your roof fixed by a commercial roof repair company, then you may experience pooling, which, if left unresolved, can causes leaks.
By doing your due diligence and getting your roof professionally inspected, you can feel confident knowing that the future owner isn’t at risk of roof-induced leaks.
For the best results, you should look for an experienced roofing company; doing this will ensure that they can get your roof fixed quickly.
This may seem like an act of kindness, but it also gives you the leverage to increase the asking price. This is because you’re relieving the buyer of the task, which helps them to reopen the business that much faster.
Once you’ve sold your business, there’s no going back; that’s why you need to make sure that you get the best price possible.
Before diving into the selling-process headfirst, you should consider the tips mentioned above. If implemented correctly, these simple tricks can help you maximize your profit.
Interesting related article: “What is M&A?“