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Preparing to Sell Your Business? 

Recently while reading an article online that discussed boosting a company’s enterprise value, I realized that many business owners may not realize the benefits of preparing to sell before they commit to selling their business. 

The best example that we can all relate to is if you have ever decided to sell your home. You want your home to look its best and hopefully better than others on the market. So, you make improvements and add value to your property in hopes of getting the best price per square foot. In the same way, if you are planning to sell your business, you should work intentionally to boost what your business is worth. 

 
You need to learn what the valuation range of your business is or could be. This requires knowing earnings before interest, tax, depreciation, and amortization (EBITDA). There are also “comparables” for companies like yours on a national level. Each comp value is expressed as a multiple of your financial measure, such as five times EBITDA. By looking at the low and high end of your comp values, you’ll discover a range of what your company could likely sell for. This scenario is like your real estate agent letting you know what similar homes in your neighborhood sold for. 

 
Our team at CBI has the knowledge and expertise to help you develop a plan for getting ready to sell your business. Give us a call when you start thinking that it may be time to sell. We can help guide you through the process and hopefully put more money on your bottom line when you do sell. 

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