VALUE DRIVERS

Pricing/Evaluations Of Business Assets

There are no "perfect" businesses. ABMI, having sold thousands of businesses over the last almost 30 years, has brokered many "almost perfect" businesses, but, we've also found that there are buyers "out there" for just about any business, if the price and terms are attractive. Of course, the more "perfect" a business is, the more it is likely to sell for. So, below are comments about the most common "value drivers" is determining price and terms.

Value Drivers

  • Management Team

Is there a stable management team in place that will most likely stay after the transaction? How active is the owner in the management of the company? How difficult will it be to replace management?

  • Operating Processes

Is there a defined, consistent process in place to deliver the goods or services? Are the operating processes documented?

  • Customer Base

Is the customer base composed of multiple accounts, or is a significant portion of your business generated from a small number of key accounts? How long have your customers been doing business with you? Does your customer base typically generate a one-time sale or is there repeat or recurring revenue associated with the accounts?

  • Appearance of Facility

Is our workplace neat and organized or dirty and full of clutter? A disorganized workplace can give a negative impression to potential buyers.

  • Financial Records

Do you have good financial records? Do you have internal controls in place to prevent inventory shrinkage or theft? Are you accurately reporting all income? It is difficult to capture value from “unreported” income.

  • Cash Flow Trends

Is the cash flow for your business declining or increasing? Declining cash flows always raise concerns for buyers and lenders. Consider implementing changes to stabilize cash flows prior to the sale.

  • Growth Strategy

Is there a realistic plan in place that could generate grow for the company? Buyers are usually interested in improving the business. Be prepared to helping potential buyers understand how the business could grow in the future.

  • Tax Considerations

Obtaining maximum value from the sale of your business is only part of the challenge. The after-tax proceeds that actually make it to your pocket is the other part. You should consult a professional knowledgeable in the transfer of businesses to help advise you. There are a number of tax savings strategies that can substantially affect the amount of after-tax proceeds generated from the sale. In most cases these strategies must be in place prior to acceptance of a sales contract (Letter of Intent or Offer to Purchase) for your business.

ABMI will work with your accountant, attorney and tax planner/advisor to plan the best tax strategies for you and your family in the sale of your business.

Experience Counts: ABMI, having performed thousands of pricings/evaluations over the last 30 years, for Missouri business owners, Kansas business owners, and business owners throughout the Midwestern USA and beyond, and having helped buyers from all over the USA and many foreign countries evaluate/price acquisitions, understands the complicated business pricing/evaluation process. We've developed systems for simplifying that process, that we offer to business buyers and sellers, on acquisitions of all kinds, all sizes and all prices.

To arrange a free, no-obligation consultation, during which ABMI agents/consultants/advisors can help you identify, organize and evaluate the Value Driving Elements of your business, you may register with this web site, and we will contact you.

Register with ABMI.net Sign Up Now

6201 College Blvd., Ste 385
Overland Park, KS 66211
Phone: 913-341-6300
Fax: 913-381-5978
info@abmi.net