How You Sell Your Business Will Determine Its Selling Price

How You Sell Your Business…

When you decide to sell your business you could make 50% more or 50% less depending on how you sell your business. When it comes to the how’s, here’s a list starting from the worst way to sell (lower value) to the best way to sell (higher value):

  1. Liquidation
  2. Book value
  3. Unsolicited offer to buy from a competitor
  4. Professional contact introduction
  5. Private Equity Group
  6. Strategic Buyer through a Broker
  7. Strategic Buyers in a Bidding Process

The Liquidation value of a company is often used if a business owner dies or becomes ill. The value does not include goodwill, company earning potential or client lists. By selling your company this way, you’ll get the least value possible. On the flip side, getting Strategic Buyers in a bidding process is the ‘holy grail,’ of selling. This allows for competition and has the potential to increase value through demand.

How you sell your business is a fundamental aspect regarding the value you ultimately achieve. While trawling through YouTube, I found an excellent video that outlines the various ways to sell a business in addition to explaining why. To get a full description on each of these methods, watch the following video created by MidMarketCaptialInc.

How You Sell Your Business Video

Kim Brown, Co-Founder of Business Wand, helps business owners navigate their way through the start to finish process of selling a business. Her specialty is to help owners cut costs and increase profits prior to sale. To understand how you can sell your business quickly for the highest sales price, purchase the book, “How To Sell A Business: The #1 guide to maximising your company value and achieving a quick business sale”