Business valuation

Business valuation tips

Here are a few tips courtesy of my friend Bill Sivell of VR Windsor

1.     What about that big customer?

Many companies have a single customer or a few large customers that dominate their overall sales. After all, nobody wants to turn down business!  But when it comes time to sell the company, this becomes a huge problem.  Most buyers won’t look at a business whose revenues could drop dramatically after closing from the possible loss of those customers.  Some how, some way, business owners have to find a way to diversify their customer base before they ever decide to sell their business.

2. Timing is everything!

Many business owners seem unable to let go of their company and wait too long. Some lose their entrepreneurial drive and the business starts sliding. Or the market starts to change and the company loses value. To get the maximum price, owners need to do some serious planning to prepare selling the business at its peak.

3.  Special Relationships with Customers

 Special relationships that business owners have developed with customers can be a real issue when selling the business.  A new owner may have a problem continuing that relationship and this could jeopardize the sale of the business.  It is recommended that business owners begin delegating any special relationships with customers to other company employees as soon as possible.

Please visit Bill's web site at www.VRWindsor.com   for additional tips on placing a value on your business.