Because we were losing money and we were a public company, the stock price was undervalued. My hands were tied. I couldn't use my stock price to raise money. I couldn't use my stock price to make acquisitions. So it was either add more products and leverage the overhead or sell the brand.
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So he had to first grow the brand and then cut back on the marketing to get the costs more in line so that when he went to sell it he had a decent margin. You then have to push them for deadlines to actually review your materials. Then you go through negotiation process. When you get to the final ones that are interested, they do significantly more due diligence. Once in a position to sell, Karkus talked to a large investment bank in New York, one of the biggest in the industry and a leader in consumer products.
They wanted to charge a lot of money as their minimum fee.
Self-service SaaS or high-touch sales?
It you are making no money it is price on the value of assets. If it is making a little bit of money it is sellers discretionary earnings.
How long does it take for a company to sell? At Business Exits we average about 7 months to close a deal. How can you sell your business quickly? Everything can be sold for the right price and terms.
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One of the best ways to sell your business quickly is to offer it to someone with no up-front payment and an earnout based on performance. This can be to your business partner, employees, competitors or someone in your network.
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What type of business is the best to sell? However the differences is in the valuation across industries.
Some of the most attractive industries receive much better valuations currently are service companies, Logistics and Transportation, Property Management, Home services, and Technology companies. Who is the best broker to sell my business?
1. Know yourself as an entrepreneur before you start
As you can see from the graph above we found some interesting things:. A multiple can be applied to a number of financial metrics in a business such as EBITDA, net earnings, gross revenue etc.
- 2. Prepare your financials with your accountant!
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So, when we say that a business was sold for a multiple of 2. Here is a short list of some of the things you will be expected to have ready:. They will be able to provide proof of ownership, transfers, history, and all other legal information your buyer might be interested in.
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Some of those documents are:. Simpler deals take shorter timeframes, more complex deals take longer timeframes. Find a great online business to acquire. View the listings we have available for sale today. Tune into the Digital Exits Podcast for all the latest tips and tactics from expert special guests! Find out more. Get your free price quote for.