Selling Your Business
Selling your business is a major decision. Chances are that you may not have sold a business before and do not know what is involved in selling your business. It is natural to have questions such as:
- How much is my business worth?
- How long it will take to sell?
- Is this the right time to sell?
- How can I do it discreetly so I do not lose customers or employees?
- How do I prepare my business to sell quickly and make it more desirable?
We have answers to these questions. As specialists in selling medical businesses let us help you and make the process easier for you.
What Makes a Business More Salable
If you are not quite ready to sell your lab but are looking to sell it down the road, you may want to know how to make your business, more valuable and salable. You could focus on improving some of the following (as per the Value Builder System)
- Revenue/Profits is one of the key matrices that typical buyer looks at. Very few want turnaround businesses, although there are exceptions.
- Growth Potential – Can the buyer, perhaps with new products or services or with better marketing, grow the business?
- Embracing the “Swiss Structure” – Be independent and not overly dependent on a key employee, a key vendor, or a key customer. Develop options.
- Cash Flow Strength – Is your business consistently cash flow positive – so you don’t have to borrow money from time to time by keeping gross margins high and getting paid faster.
- Recurring Revenue – Every buyer loves recurring revenue – revenue that keeps coming without significant additional costs of acquiring new clients or retaining existing clients. This could be, for example, long-term, auto-renewing contracts.
- Be Unique and Different – Can you offer something, e.g. some service or product that is proprietary or unique that no one or very few other labs offer? This would make it attractive to buyers because it creates a barrier for others to copy you.
- Customer Satisfaction – Ultimately customers make or break your business and so having a high customer satisfaction, makes buyers more comfortable.
- Strong Management Team – Is your business too dependent on you? Will it fall apart after it is sold? Many buyers are not going to be owner-operators but investor buyers and they like the business that will run smoothly without the owner.
Get Your Value Builder Score Now in 15 Minutes
How does your business fare on these fronts? If you are curious, there is a simple 15-minutes test that will give you a “Value Builder” score – showing you where you are strong and which areas you need to improve upon.