Learn the Five Factors you Need to Sell your Business

Learn the five factors you need to work on to obtain maximum value for your business when you plan to sell.

If you hope to sell your business someday, learn the Five Factors important when you want to sell your business. Even if that someday is three, five, or ten years from now, start working on these things while you can.

Good Earnings

The first factor important to selling your business is earnings.
We talk about EBITDA, which is earnings before interest, depreciation, and amortization. This number should be good in your company compared to the rest of your industry; every industry is different. You want to be trending up when you sell your business, not trending down.

Revenue Diversity

Next is the source of revenue and diversity. You want your business to generate revenue from various sources without a significant amount coming from one or two customers. Again, every industry is different, but keeping all revenue at less than 10% from any one client is beneficial.

The third factor is record keeping.

Your accounting records need to be clean and accurate. When your buyers look at your books, they need to understand what you are doing quickly.

The fourth factor is processes and procedures.

Are your processes clearly documented so that anyone can easily start running your business?

The fifth and final factor is your team.

Do you have a competent and well-informed team that can run the business without your constant presence? This is crucial for the business’s sustainability and its attractiveness to potential buyers.
All these factors are essential if you are planning to sell your business. Start working on them now so that when you sell, you will receive a good amount for your business.

See services for OC Growth Advisors – Your Partner for Success in Growth

See 5 Important Factors To Consider Before You Sell Your Business (forbes.com)