Articles

What Matters Most to Business Buyers?

Valuing

Posted by Murphy Business & Financial Corporation LLC on

An established business has much to offer a prospective buyer. A proven product or service exists, as well as a customer base. Typically, there are experienced employees and managers in place (and many choose to remain with the company after the sale is complete). There is a cash flow from the first day the buyer takes over the business. The company is already accustomed to paying its debt service in addition to a reasonable salary for the owner. The following are some of the things that will make your business stand out and be attractive to buyers:

  • Proven verifiable books and records, tax returns
  • Reasonable Price
  • Leverage and terms, They want to use bank financing, owner financing and as little of their own money as possible
  • Solid, verifiable cash flow
  • Furniture Fixtures and Equipment properly valued and in good condition
  • Positive appearance of facility, good reputation
  • Favorable lease and lease options
  • Training, transition period with the seller
  • Covenant not to compete, non-solicitation agreement
  • Solid Reason Why the owner wants to sell
  • Experienced Employees who will stay on
  • No last minute surprises