If you don’t have a key person, family member, or co-owner who will ultimately serve as your buyer, then consider an outside sale one potential strategy. Return expectations are low for low risk assets, but small and middle market businesses are expected to deliver strong returns. The higher you go on the risk spectrum, the more an outsider may expect for their investment.
If you looked at your earnings over the last three years, how would they compare?
Are you able to look at our business as an investment, rather than a job?
Is it growing, and why?
How many hours a week will someone want to spend tending it?
The less time you are required to spend running the business, the more value you can potentially add to the sale price. Take our Owner Dependence Survey to see how your business may be viewed by outside investors or buyers.