FourBridges Capital Advisors

Planning to sell your business and not sure you need an advisor after being approached by a potential buyer? Think again. When you negotiate with a single buyer, there’s no pressure to pay full value for the business. Think about it this way: when you’re selling your house, it’s best to have multiple offers, so that you can choose the highest bidder. The same goes for selling your business.

Before you make the decision to sell, you should have a plan in place for how the company should proceed after you exit. A succession plan will guide your employees and family members in the event of an emergency, and it will also guide your employee relationships through a transition. Learn more about the importance of succession planning:

Business valuations can be helpful for setting strategic growth objectives or developing succession plans. Expand this post to learn about the 3 valuation types: 👥 Asset-Based Valuation – based on the value of the business’ assets and liabilities. 👥 Income-Based Valuation – Using the Discounted Cash Flow (DCF) Method, the expected future income of a business is projected for a discrete period (typically five years). The expected future income is then discounted back to present value using a present value discount rate. 👥 Market-Based Valuation – Compare your business value either to similar public companies or private companies that have been acquired to determine the appropriate pricing multiple.

Something important to keep in mind when planning to sell your business: getting your finances in order will directly improve the marketability and sale price of your business. It will also save invaluable time in the sales process. We always push for a 60-day maximum closing process, as this transition time can raise questions among employees, customers and vendors.

We're sharing our proven process that we use to help clients navigate the sale of their businesses and get the best value. This time, FourBridges Managing Director Ralph Montgomery is explaining the IOI, the indication of interest. https://lnkd.in/eXdsZMja

Wishing you a relaxing Labor Day holiday!

Why should you partner with an investment banker when selling your business? An experienced advisor can help you maximize the value of your business for a sale through three key steps: preparation, perception, and positioning. Also, beyond the sales price, a good advisor will ensure that your financial and personal goals are met, from maximizing cash received at closing to preserving your legacy and taking care of your employees.

Did you know that incomplete or inaccurate financial documents can lower the value of your business? It can also draw out the sale process and even scare off highly qualified buyers. Here are some tips on how to get your finances organized before you get ready to sell. https://lnkd.in/d_5wNsX4

How do you sell a business? Download our FREE guide and see the step-by-step process so you’ll know exactly what to expect when it’s time to transition your business, whether you’re just taking some chips off the table or you’re ready to retire.

One blind spot that can make it hard to sell your business is a lack of diversity. If any one customer represents more than 20% of your revenue, you’re waist deep in customer concentration issues. Potential buyers could view this dependence on a few revenue streams as a risk, hurting your valuation multiple. Ideally, no customer should exceed 10% of total sales.