Step right up and pick a headwind for your business! Inflation, hiring and retaining employees, supply chain uncertainty, interest rates, and ____ (insert your choice).
*now, if you can, set aside the day-to-day for a moment*
Here’s the truth we all know: the economy is rarely as good or as bad as the media or economic measures indicate. It’s always somewhere in between, and importantly, it’s always changing. Seasoned operators understand this and know that success is measured on how you manage your business through complete cycles.
Wondering about the business sale outlook, valuations, or the sale process?
Time for some straight talk.
Businesses ARE selling. We had two closings in November and another two businesses go under contract. One business went under contract in 18 days! The other took 44 days.
Observations:
- An appropriate, defensible, market-based valuation is critical (review trailing 12-month cash flow)
- Stable outlook / market / customer mix increases probability of success
- Focus on pricing and cash flow – are you sacrificing margins to maintain sales? A valuation range is driven by cash flow and profit..not top-line revenue
- Clarity on owner role vs team
- Organized financials & records are foundational to a deal getting done
- Interest rates are not the primary driver in small-to-medium business sales
Every owner wants a fair value for their business when it is time to sell. We talk less about something else owners almost always tell me – they want their time back. One owner’s spouse told me she wanted to stop eating dinner at 9pm. I sat in the living room of a house in Kent, WA with an owner and his wife ($9.5M freight business) this summer and they told me they wanted to be able to go on an Alaska cruise and unplug from their business. I could see why too – their phones buzzed constantly.
Do you want your time back?
Would you like to be doing something different in a year?
Now more than ever, professional representation and guidance matters.
It’s time for a couple questions:
How do you want your business to look different 1 year from now? 3 years? And no, you can’t cheat by saying larger or more profitable.
If you had $100k to invest in your business right now, what would you do?
If you had to trim expenses 5%, what would you cut? What about 20%?
Where does your new business come from?
Do you know why your prospects aren’t converting?
The best athletes in the world surround themselves with coaches, trainers, and nutritionists. They have a plan and work that plan.
So – who are your business coaches? Who is advising you? Who is helping you drive your business forward?
Between now and Jan 15th we will invest 45 min with any owner that wants objective counsel about how to position and improve their business in this economy.
No charge.
No commitment.
100% confidential.
Does not matter if you are 10 years away from selling.
Why consult us?
- We speak to, see, and value many types of businesses; similar to how a trainer or teacher sees patterns..we do too
- You very well may be overpaying for some expenses; these are often easy to spot when we review a P&L
- An objective, independent perspective
- Insight into how prospective buyers will view your business & industry – and importantly – how you can improve this
- Immediate, concrete actions to take NOW
To book, complete this Google form and we will schedule your consult. 60 seconds and you’re set.
Look forward to helping your business enter 2023 with a plan!
That is it for today – more to come in a future post. Please forward or share this content if you find it valuable. As always, thank you for reading!
At Washington Business Brokers we are experts in valuation, optimizing a business for sale, buyer identification and qualification, negotiation, deal structuring, and closing.
We do not sell you on selling your business or buying one. Instead, we listen, provide options and expertise, and ultimately partner with you to accomplish your goals. We will be ready when you are.
If you would like to better understand the value of your business or learn more about the process of confidentially selling:
call or text 206.703.3555
email [email protected]
or schedule time for an exploratory, free chat
Conversations are always confidential and there is no commitment. We will be ready when you are!