CHICAGO, Sept. 5 IL-IBBA-add-value
CHICAGO, Sept. 5 /PRNewswire/ -- With many business owners looking to sell
over the next ten years, don't hesitate to add value to your business now.
Waiting till you put your business up for sale is too late.
"Not all businesses, especially smaller ones, can improve their hard
assets like cash flow to add to their value prior to selling the business,"
says Cress Diglio of Corporate Investments International, Inc. and IBBA
chairman. "Consider adding value through important intangibles like
employees, customer lists or location."
There are a number of options to consider:
-- Develop key employees. Buyers generally aren't interested in paying a
premium if the business relies on you for its success. Demonstrating that
your company's success is reliant on your capable, well-trained employees --
not just you -- will pay off at the time of sale.
-- Document what you do. Be sure that job descriptions, operational
processes, strategic plans and business records are documented and
well-organized. Documented records give a buyer greater comfort that he or
she will be able to emulate your successful growth and will help your buyer
obtain financing.
-- Build relationships. Name recognition, customer awareness and your
reputation are all part of your business value.
-- Improve cash flows. A potential buyer wants to see the "true cash
flow." Diglio says ... "It's important for business owners to make sure they
are driving all income to the bottom line."
-- Review your assets. Sell off or dispose of unproductive assets or
unsalable inventory. Remove or buy off any assets that are primarily for
personal use.
-- Find and build your niche. Buyers will pay a premium for a niche that
has barriers to competitive entry.
These intangible assets convey a value that financial statements alone
don't. "Start working on intangibles well in advance of putting the business
on the market," Diglio says. "It's also important to line up key specialists
-- an attorney, an accountant, and a business intermediary -- who will help
you make the most of the sale."
The International Business Brokers Association is the largest
international non-profit association operating exclusively for the benefit of
people and firms engaged in the various aspects of business brokerage and
mergers and acquisitions.
SOURCE International Business Brokers Association
