The Internet is full of several stories of people who sold their businesses at astronomical figures. These success stories are enough to convince you that you can also sell your company at top dollar. Unfortunately, over 90% of business owners don’t get their business’ worth when selling because of various avoidable mistakes.
Among the most common mistakes is refusing to hire services of business brokers in Denver, Colorado. Different types of interested buyers will affect your business value differently, and without a business broker, it is easy to be misled.
Here are some tidbits on how common buyers impact the worth of a company:
Professional investors include private equity groups and venture capitalists who buy into several industries. They have a ready-made method of valuing your company and often assume you will continue running the company for them after selling. They are ideal buyers if you still want to run your company even if you already lose full ownership.
These investors buy into specific industries. They are typically large companies who are prepared to pay top dollar for companies offering reduced overheads, faster growth, and economies of scale. In most cases, however, they offer an average buying price since they are bigger than your company.
These buyers buy into companies that have assets they need, which, in most cases is proprietary content or patented technologies. Typically, the selling company’s profits and losses have little effect on a strategic buyer’s valuation. He or she is primarily interested in what the asset can do for his or her company.
The above business buyers all look for companies that meet their specific criteria. If you meet the requirements, they will be more willing to buy than you are to sell. Your business broker has the right strategies to help you sell to your advantage.