Sell Your Business
Sell your Business strategy
How can I sell my Business? At Tri Source we understand and assisted in the process of transferring businesses from willing sellers to willing buyers for many years.
Many sellers - even after 40 years in the business- never started the process of succession and preparing the business for sale and the question often comes: How can I sell my business; How much can I get for my business; how quickly can I sell my business.
My answer is normally: If your business makes a profit and you are prepared to consider a realistic price it is almost guaranteed that it can sell. The two unknown factors remain: How long will it take to sell my business and How much can I get when I sell my business.
These two unknown factors are however correlated in that the less expensive you are prepared to sell the quicker it can happen. The more you want the longer it will take.
With the amount of information available to buyers there is a very high degree of logic when price, return and risks of opportunities are evaluated and compared to alternative businesses on the market and alternative investment opportunities.
Tri Source offers consulting services to assist sellers who decided to sell the opportunity to prepare the business for sale. This service is targeted at factors that negatively influence the thinking of buyers.
In the process of preparing a business for sale we therefore increase the pool of buyers that may be interested, remove or partially remove elements of the process that negatively affects the sentiments around the price.
These strategies therefore not only improve the potential selling price but could also contribute to a much quicker transaction.
Business valuation is not an exact science. If this was the case we would have been able to use formulae to determine the price of stock on the stock exchange and become very rich. At Tri Source we developed a valuation technique that not only consider fundamental but also sentimental value drivers. The latter are seldom considered in the process but could potentially have a massive influence on the price achieved.
As Tri Source consultants we look at businesses through the eyes of buyers and assist sellers by removing obstacles that could delay or prevent the businesses from selling. In the process of applying strategies more buyers can be added to the pool of potential buyers. Every buyer has a unique risk appetite and as risks are proactively removed by sellers more buyers becomes interested. This will have a positive influence on the price and also the speed with which the business can be sold.
Succession and exit strategy
Every business should have a succession plan (and ideally a back-up plan as well!) Transfer of ownership is inevitable. Weather it is the plan to transfer to your children, family, friends, employees, competitor or a willing buyer from the street… everyone can benefit from placing strategies in place that will minimise risks in the transfer process.