Diverse Buyers will pay more for businesses that naturally protect against losing a single customer

Diverse Buyers will pay more for businesses that naturally protect against losing a single customer

Old, stale businesses frequently attempt to acquire appeal by acquiring a cutting-edge, young company in their sector. Expect a premium offer if you are the “darling” of your industry’s trade media. 5. Location: Buyers who understand your industry will be interested in your business and location if you have a great location with natural physical characteristics that are difficult to replicate (for example, an oceanfront restaurant on a strip of beach where the city has stopped issuing new licenses).

Diverse Buyers will pay more for businesses that naturally protect against losing a single customer. If you don’t have any customers who make up more than ten percent of your revenue, your business will be more valuable than one in your industry that only has a few big ones. 7. Predictability Your secret customer-acquisition formula will make your business more valuable to a buyer than a competitor in your industry who does not know where their next customer will come from if you have mastered a method for winning customers and documented your sales funnel with a predictable set of conversion rates.

Clean Books The financial statements of businesses that make an investment in audited statements generally have a higher value because buyers consider them to be more trustworthy. Even if audited statements are not the norm in your industry, you may want to have your books reviewed annually by a professional. 9. Businesses with a second-in-command who has agreed to remain on after the sale are more valuable than those in which the owner retains complete control.