How To Maximize The Sale Price Of Your Business In Arizona

Increase Your Arizona Business Sale Price

When you’re considering selling your business, naturally you want to maximize the sale price. But how can you accomplish that? Phoenix Business Broker Phil Reese is ready to explain the basics so you can gain the highest profit from the sale of your Arizona business!

Getting Started

The first step in determining how to maximize the sale price of your Arizona business is to determine what it’s worth – which ultimately is whatever amount the market is willing to pay. You’ll also want to make sure you have reasonable expectations.
Prospective buyers will want to verify that your business is profitable and has good cash flow. Take some time to gather information about the last three years of your business, including the following:

Profit and loss statements and balance sheets

Federal income tax returns

List of equipment, other business assets, and current inventory

Lease or building ownership documents

Information and payment schedule for any existing loans

Copies of equipment or other leases

Franchise agreement, if applicable

You will want to present all of this information in a neat and organized format so that it’s easy for prospective buyers to get a good understanding of the financial situation of your business. Be sure that your financial statements are current and accurate. If they are not, it’s worth the small investment of getting professional accounting help to put all of your finances in good order.

Determine The Tax Consequences

One of the big questions a Business Broker and your accountant can help you answer is not just the final sale price, but how much money you will actually net from the sale after paying applicable taxes. This amount will vary depending on what type of business entity you have set up and the tax laws that are associated. It can be very disappointing to get through a sale only to discover that you will only be putting a small amount of money into the bank, so this is a very important step in the selling process.

Consider What Prospective Buyers Want

To maximize your sale price, you’ll want to be prepared to answer questions about the following:

Are you willing to train the new owner?

What makes your business stand out from competitors?

What defines your product or service?

What are areas of future growth?

How does your profit fluctuate throughout the year?

Your prospective buyer will want to know all about the financials and assets of your business. They’ll want to understand what makes your business special compared to its competitors and what you consider to be its strengths and weaknesses. Additionally, they will want to make sure there is sufficient cash flow to keep the business running smoothly. They will also want to consider future capital expenditure needs such as new equipment, vehicles or remodeling costs. You’ll want to talk with a Certified Business Intermediary (CBI) about all these facets of a business sale and how to present the information in an accurate and appealing way.

Additional Ways To Maximize Your Sale Price

Increase the value and appeal of your Arizona business by incorporating the following suggestions:

Develop a website and social media presence.

Replace worn out equipment if financially feasible.

Increase curb appeal: fix your sign, paint the walls, replace the carpet, and complete other improvements to enhance the appearance of your office or workspace.

Eliminate unpleasant surprises in the sale process by resolving all legal, accounting, and environmental issues that you may have been avoiding.

Create an operations manual for your business.

Get The Best Representation For Your Business Sale

One of the keys to maximizing the sale price of your Arizona business is working with a Certified Business Intermediary (CBI) who knows the ins and outs of selling a business. Phil Reese, CBI, is a licensed Arizona business broker! who has the skills and experience it takes to successfully market and sell your business. As an award-winning agent, he will go above and beyond to promote a smooth and successful business sale. Schedule your consultation today!