Buyers always want to know how long the company has been around
Jeff Slaton says "A company with a long track description means there are good reasons for that company to be operating. It will be well known in the area, and people will be used to patronizing the company or using its services. The longer it has been in operation, generally, the great the business. They will also want to know about the employee situation, especially any key employees".
They also want to know how long the distributor has owned the business
The longer the gift owner has been in business, the more likely he or she has been successful. people don't stay in company if they are not development money. They may want to know why you bought the company in the first place and correlate that against your perceive having owned it.
Buyers always want to know why you are selling your business
A prospective company buyer will ordinarily want to know why you are selling your business. They know that company owners sell for a collection of honest reasons, but sometimes not, so a savvy buyer will want to be sure he knows why you are selling. You need to be ready to undoubtedly write back that to the buyer's satisfaction. If the owner of a company has been in company for six months, is 37 years old and wants to retire, the buyer will be suspicious. The more valid the reason for the sale, the more realistic the buyer's offer will be. Why you are selling is an leading question-consider your write back carefully.
Why Books and Records are important
A company buyer will want to study your financial track description and brand equity. They want to know that they can undoubtedly pick up where you left off, without suffering any financial setbacks. The financial records of your company are a good indication of how well the company has been doing over the years. But, there is a incompatibility between your financials as reflected by your tax records and your true financials. Tax records are not designed to show a company in the best light when it comes time to sell your company because no one likes to pay more taxes than they have to Generally, tax returns are a worst case scenario. The buyer needs to be shown which expenses are non-cash items, such as depreciation, and company use of home and vehicles. An accountant or company broker can help you with this. Then, your financials can be recast to reflect its "True Net Income". Sure, a buyer will see the tax figures, but only after also finding the differences between the two ways of accounting and identifying what the "True Net Income" is.
Buyers will value a company on reported income only
Buyers can think only the income that a distributor can show them. Although not reporting all income is against the law, we all know that cash type businesses sometimes do not description all income for tax purposes. This "underground economy" has been well documented and is in the billions of dollars. Sellers may tell a prospective buyer about how much they are "skimming," but wise buyers ignore their statements, since they have no way of proving these amounts. As you would expect, buyers base their buying decisions on what they know for sure. company owners that description their sales accurately may pay more in taxes, but their businesses sell at a higher value because they show greater income. Virtually all buyers form that a company will sell for less than the asking price. Expect that. Buyers will want to negotiate, sometimes aggressively. That's where a good company broker will be worth his salt. When selling a secretly held small business, pricing is as much art and marketing as it is fact and financial history at times.
What Buyers Look For When They Buy a company