"Working with Julie White and BlueKey Business Brokerage to sell my market
research company was far easier than I ever imagined. In fact, I was afraid
I would be in for a long sales period and a barrage of tasks and inquiries.
Julie is so incredibly organized that I was able to bring the paperwork she
needed together rather quickly based on her document process. In addition, I was
very pleasantly surprised that within a few weeks she brought me multiple
offers. The sale of my company happened quickly and efficiently.
Throughout the process, Julie was supportive, knowledgeable, and dedicated
to securing a good outcome for both me and the buyer."
-S. Fox, Former CEO
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VALUING YOUR BUSINESS
Every seller must ask themselves, "How much cash do I want to receive at the closing?" or "What is my premium price?".
When pricing the business for sale, the more realistically the business is priced, the faster business will sell. Most small
businesses statistically sell on a multiple of 2 to 5 times adjusted net cash flow, depending on the industry. When
pricing the business, be sure to enlist a certified business appraiser or an experienced business broker to provide you
with an opinion of value. The opinion of value will be determined by adding owners salary, health benefits, financial
perks, depreciation, amortization and non-reoccurring expenses to the net income stated on the profit and loss statement
or tax returns. By adding these items back to the financial statement, a buyer will have a better idea of how much income
he or she can expect to receive when they take over the company. The adjusted net profit is frequently referred to as
Discretionary Earnings.
After receiving your valuation, compare the current value of your business to your proposed exit date and premium price
expectations. Is your premium price realistic? Is the time frame realistic to reach the necessary sales levels to achieve
that price? In order for you to reach your goals, all elements must come together.
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BlueKey sends out a regular newsletter that is very
informational and will help you gain a better understanding
of what you should do to improve your business
opportunity skills.
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Download PDFs
11 Land Mines to Avoid
Make the Right Decision When it Comes Time to Sell
Download Selling Your Small Business Letter |
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