What is a buyer is thinking when buying your business? Dependency
- How much time are you spending in the business? (Do you have systems in place?)
- How often do you come to work? (Can it operate without you?)
- When is the last time you brought in a new client? (Is it still dependent on your relationships?)
- What are the concentration levels of clients/sales? (Is one client representing a large source of revenue or is it balance with many others?)
- Who are your vendors? (Are they friends/colleagues?)
- How many family members are in the business? (Will they leave when you sell?) (What will be the recruitment costs to replace them?)
- Who pays the bills? (More systems checks…)
If the business relies too much on you, prepare for an earnout versus cash directly in the bank.
Want to learn more about whether your business is attractive and ready for sale?
Give me a call.
