Business Sales: Fabio’s Cleaning Business Sells For Asking Price
The thought of selling a business and making a lot of money can be very exciting. Unfortunately, not every business owner is going to achieve the huge cash price that they may envisage. But that doesn’t mean you can’t walk away with what you deserve either. You just need to figure out what price is right for the sale of your business and that’s where Bonza can help.
Setting a realistic asking price when preparing the business for sale is crucial. When deciding on your price, it is best to be rational. Don’t assume that there are a huge group of buyers waiting to overpay for ownership of your company, even if it is profitable. There are numerous factors that go into determining a reasonable price and the Bonza appraisal process and our experienced team make that job easy.
When our brokers first begin to determine your company’s true value, we will look at several different factors. We can review your income & expense statements, cash flows, balance sheets, and financial projections as well as your assets and stock. Based on how successful your business currently is, they will give you an estimated value of its worth.
Business owners frequently make the mistake of becoming emotionally involved in the sale of their company. This is understandable given their years of hard work and stress in the business. Naturally, they’ll want to see a reasonable return on their investment. However, you must not allow your emotions to influence your decision-making.
You could have a very successful business with a consistent cash flow. However, this does not guarantee that you will find a buyer willing to pay your asking price right away. The best thing to do is to set a “reasonable” price and then have patience. Do not be tempted to lower your offer price simply because buyers are not arriving quickly enough. If you’ve done your homework and know the price is fair, all you need to do now is wait until the buyer comes along and that could be today or in a week.
Do not assume that new buyers will be foolish enough to pay more for a business than it is worth. What you must understand is that a buyer is unlikely to act alone. They will almost certainly have a solicitor, a lender, or their accountant conduct their own valuation of your business first. This is especially true in the case of a lender because the buyer may be borrowing money from a bank to buy your business. Their lender will want to know if this is a wise investment for their prospective borrower.
A great example of this was Fabio’s recent sale of his cleaning and maintenance business.
Fabio’s popular home maintenance and cleaning business had clients across Queensland, business was booming yet Fabio wanted a change which prompted him to contact Bonza about selling. All the hard work had already been done building a great business, Bonza now needed to determine an asking price that would not only be fair for a buyer to pay but ensured Fabio’s efforts were worth it for him to sell.
We know we hit the sweet spot of $850,000 when the new owner was found in as little as 4 months. Fabio trusted Bonza to handle the entire process from start to finish, and our team delivered this fantastic result.
After creating a captivating and informative advert that lived up to this business’s reputation. Our broker team handled the buyer enquiry and sales process efficiently and was able to identify the right buyer from the 35 solid enquires we received.
By using Bonza Business and Franchise Sales Fabio saved himself thousands of dollars in commission and achieved the result he was after. Having a terrific business is one thing but it is the full sales service that Bonza provides that is making success stories like Fabio’s a common occurrence.
