Things that are Important to Buyers

Only the least risky and most profitable businesses will change hands successfully.

With buyers focusing on businesses which represent good investments capable of operating with little or no dependence on their owners, the following characteristics will be seen as desirable:

• Businesses which have scaled beyond a total dependence on the owner
• Proprietary product, services or processes
• Strong, remaining management
• Defensible, differentiated market position
• Stable, diverse customer base
• Recurring revenue business model
• Business growth (opportunities)
• Strong operating margins
• Manageable business risk
• Quality business and accounting systems
• Audited annual and timely internal monthly financial statements

By laying out these tangible points, as a Seller you can now see what areas you need to work on. Others of you will be encouraged to see that you have your company ready and are able to go to market now if the timing is right!

For more information on Exit Planning, Valuations, M&A, and Business Brokerage, please call or email Joan Young, President of Sunbelt Business Brokers, Greater Bay Area at 408-436-1900 or jyoung@sunbeltbayarea.net.