How To Sell a Business for The Highest Price

Your San Jose, CA Certified Business Brokers

At Sunbelt Business Brokers, we strive to help our customers sell their business for the highest possible price. Every member of our expert team has years of experience helping clients extract the maximum value out of their business, and we’ll use our highly developed network to help you find the perfect buyer. Going into a sale, there are a number of things to keep in mind when valuing and selling your small business. This page will give you some basic pointers on how to position yourself to sell for the highest price possible.

Maximizing Value Through Professional Business Valuation

  1. Financials Recasting
  2. Market Positioning
  3. Pro Forma Financials
  4. Valuation
  5. Identifying Premium Buyers
  6. Marketing Materials
  7. M&A Process
  8. Multiple Buyers
  9. Confidentiality and Timing
  10. Due Diligence
  11. Negotiation
  12. Deal Structure

Discuss Business Valuation in Terms of the Future Potential of the Business

A buyer will gain confidence and comfort in a business by performing analysis and thoroughly understanding its historical financial performance. However, when negotiating valuation, it is important to focus the discussions on the future cash flow potential of the business. Conducting rigorous industry research and analysis, developing defensible financial projections and presenting the pro-forma financial and strategic benefits (revenue and cost synergies) of the merger are all vital steps for a seller to take to be effective in valuation negotiations. At Sunbelt, we’re experts in analyzing and quantifying the future potential of businesses, and we’ll ensure your buyer understands how the business can and will grow – and how that impacts the value of the purchase. Furthermore, as experts in the San Jose, Sunnyvale, Mt. View, & Santa Clara markets, we’ll demonstrate how local economic factors affect the future of your business to further support our valuation.

No Business Valuation is Complete Without Proper Quantification of Intangibles

At a minimum, a buyer ought to be willing to pay the baseline intrinsic value of a business. In many cases, however, sellers forego the opportunity to obtain appropriate compensation for the intangible value of the business. This is caused by the inability of inexperienced sellers to properly substantiate, support and quantify the intangible value of their business. Employing proper valuation methodologies and techniques can help sellers maximize value. It is also important to recast historical financial statements in order to show the effect the purchase of the business will have on the buyer’s financial results. Sunbelt brokers have the skills and knowledge to translate intrinsic value into clear, defensible, quantified measures – helping your buyer see the true value of your business.

Negotiate a winning deal structure

Properly structuring a transaction is just as important as negotiating valuation. Being experienced in deal structuring and effectively negotiating the terms and conditions of the transaction are critical to securing and preserving the maximum value for a company. At Sunbelt, we are masters at deal structuring, and we’ll help you negotiate a structure to bring you the maximum benefit and the lowest risk.

Contact Your Fremont, Sunnyvale, & San Jose Business Brokerage Firm

Have more questions about how to sell your business or want to start the selling process with us? We’re happy to help. Feel free to call us at (408) 436-1900, reach out to us at our contact page, or read more on selling your business. We look forward to hearing from you, and we’re excited to help you extract the maximum value from your business.