Understanding Intangibles Three Issues Business Owners Should Consider Before Selling
Posted by sellingabusinessweb, 02/07/2018 6:29 am
Baltimore is full of entrepreneurs who have put years of hard work into building businesses from the ground up. Selling a Business after investing so much effort can be exciting, but it can also be nerve-wracking to contemplate. By working with local business brokers Baltimore company owners can be sure of receiving all the compensation they deserve.
Ensuring Intangible Assets Receive Appropriate Respect and Consideration
The first step in the process for most business sales is to arrive at a realistic idea of what the company will be worth to qualified buyers. Working with a broker who knows how to sell a business will mean getting a significant head start in this respect and others.
One of the most frequently confounding issues business owners encounter at this stage is making sure that the intangible assets associated with a business will be valued properly. Some of the assets of this type that most frequently merit attention include:
Employees. Although no business can count with complete confidence on the continuing loyalty of its workers, these human resources nonetheless contribute to the overall value of every operation. While employees might be nearly interchangeable in certain industries, even such situations impose costs when it comes time to find replacements. Business owners who are interested in selling almost always do well to look closely at how much each existing employee contributes as well as how the continued service of the most valuable workers can be ensured.
Relationships. Buyers will also always be interested in the relationships a company has with its customers, suppliers, and other entities. A business that has done a poor job of building up strong, mutually rewarding relationships will always command less on the market than a competitor that has excelled in this respect. Given this, business owners often do well to think about ways of polishing their existing relationships and even building new ones before actually putting a company on the market.
Reputation. Another important, but intangible, source of value is the aura that surrounds a company in the collective estimation of the public. A business owner who decides to sell right after receiving even a single negative mention in the local press could be losing out on a significant amount of money as a result.
Moving on From Solid Ground
Dealing with issues such as these and related ones early on will make everything that follows easier and more rewarding. Any entrepreneur thinking "It might be time to sell my business," will do well to look into considerations like these.