With more and more businesses entering the market every day, it might be daunting to consider joining that number. However, now just might be the time for you to sell your Houston business. The question is, how do you set your business apart from the rest? To figure that out and do so intelligently, you need to consider what a buyer is looking for when buying a business. Once you understand these common desires, you can be one step closer to making your business the most wanted one on the Houston market.
Top 3 Common Desires for Houston Buyers
- Quality of Earnings
When it comes to the bottom line, a buyer wants to know everything possible before making an offer. Are your operational costs different each quarter – therefore, are your most recent financial statements and balance sheets consistent with what the future might hold? Do you have any non-recurring charges in your latest statement? If so, make sure that is clearly marked. This way, nothing looks questionable or confusing.
- Sustainability of Earnings
A buyer wants the reassurance that earnings will continue to grow, even after you are gone. This can be done by showing how your customer base is loyal to the product/service, and not to you specifically. Not to mention, showing consistent growth in the last 3-5 years (via organized financial statements) will bode well with a potential buyer. A business with the capacity to continue growing is an incredible investment opportunity for anyone looking to buy.
3. Information that Always Checks Out
A potential buyer should and will dig deep to ensure all of the information you are providing is accurate. Of course, knowing this means you can encourage them to do so. By encouraging a potential buyer to put your business under a microscope, you look confident and build the trust necessary to make a good deal. Any potential buyer is hoping to start negotiations with someone they can trust - why not do whatever you can to bring them some peace of mind?
Houston is a city where small businesses thrive – in the Houston-Sugar Land-Baytown area there are 119,005 small businesses. They have an opportunity to succeed because there is a culture that encourages their growth. Now, more than ever, with the strengthened economy, it is an excellent time to list your business for sale. Of course, in order to do so quickly and effectively, ask yourself: “What exactly do buyers want to see in order to buy my company?” If you put yourself in their shoes, you will likely find the answer and help your business stand out.
When in doubt or when you need guidance, contact Transworld Houston, your local business advisors. Our business advisors are equipped with the tools necessary to help you make your business the most desirable one on the market
