Sovereign-Advisory.com

• You wish to be involved in the sale of Your business.
• You want to facilitate the direction the business takes after Your departure.
• You are an individual that wants to have a hand in the future of their business and your community.

!

·       Know the True Value of your Business!

a.     It's all about Cash Flow.

b.     There is no set formula for evaluating a business.

c.      As a Rule of Thumb people are willing to pay 3 to 5 times cash flow.

d.     This would generate a return on their investment of 33% to 20%.   

·        Prepare Your Business for Sale!

a.      Determine free cash flow for the last 3 to 5 years.

b.      Increase cash flow.

c.      Fix up the building and equipment so that it makes a favorable impression.

d.      Determine current owner’s retirement objectives and schedule.

e.      Calculate a preliminary valuation of the business. 

·        Obtain Proper Identification!

a.      Document systems and procedures

·        Know all the Methods to sell a Business!

a.      Sell to a Strategic Buyer.  A strategic buyer is one who believes your business fits well into their own.  Opportunities are current supplier, customer or competitor.

b.      Sell to current Employees -There are some tax advantages to creating an ESOP.

c.      Sell to a younger person such as a relative, employee, or person you recruit.

·       Get Professional Advisors!      

a.      Design an exit strategy

b.      Help clarify your goal and objectives

c.      Preliminary valuation of the business

d.      Prepare the business for sale and find a buyer.

e.      Design a transition plan