AdviCoach® Examines Key Factors that Increase the Sale Price of a Business
Leading business and career coaching source shares how to enhance the wealth and equity of a business.
Southbury, CT (Grassroots Newswire) May 9, 2013 – Whether they are planning to sell their company sometime soon or in the future, now is the time for small business owners to evaluate their business in order to increase its value and improve its revenue stream, according to the business coaches with AdviCoach, the premier source for business coaching and advisory services customized for small- to mid-size businesses (SMBs).
To help business owners identify key factors that are linked to the probability of getting an offer for their business when it’s time to sell, AdviCoach is hosting an educational webinar on Thursday, May 23, 2013 at noon EDT. Attendees will learn how to evaluate their business by identifying dangers, opportunities and strengths and to develop a laser-focused plan, among other topics. Coaches will also be present to answer any questions. Registration is free at http://vshow.on24.com/vshow/franchisitize/registration/4407.
“Generally, business owners should start preparing a business for sale two to three years before they want to sell it. But, to more effectively increase the company’s value, they should start planning even earlier,” said Brian Miller, COO of AdviCoach®. “If the success of the business and its associated value are tied with the business owner’s knowledge, the more that knowledge is passed down to other management or included in operations and training manuals, apprenticeship plans, organizational planners, etc., the easier it will be to get a future buyer to purchase the company.”
AdviCoach examines the two key factors that business owners who want to position their company for sale should consider.
Factor one: Business owners are almost twice as likely to receive an offer if the business can survive the “hit by a bus” test.
This test takes a look at whether or not a business would continue running smoothly if the business owner was unable to work for three months. Miller says that AdviCoach has found that the more the staff and customers rely on the owner, the less valuable the company will be to a potential acquirer.
To make a business autonomous, the owner should begin by spending less time at the office to encourage the best employees to start making more decisions independently and expose employees that need training or to find another job. Also, if an owner is going to sell the business one day, he or she needs to look at it as an inanimate, economic engine and not as something that defines who they are.
Factor two: Companies with a management team (as opposed to a sole manager) are getting offers at almost twice the rate.
If the business doesn’t have a management team, hiring a second-in-command can help the business owner balance the demands of running the company and advance their targeted exit time. Miller suggests a four-point strategy:
- Identify strong internal candidates who, in most cases, have a high tendency to outperform external hires.
- Allow these candidates to prove their skills to the team by assigning them a special project.
- Select the strongest candidate, and introduce him or her to the team.
- Begin to transfer responsibility to the new second-in-command by gradually transitioning from manager to coach - spending less time talking and directing and more time asking questions and listening.
To learn more about AdviCoach services, please visit www.advicoach.com.
With more than 25-years of experience in business coaching, AdviCoach is the premier source for business coaching and advisory services customized for small to mid-size businesses (SMBs). The AdviCoach business model is designed to empower SMB owners to increase the productivity and value of their businesses through unique coaching methodologies and the deployment of “Rapid Impact Strategies,” ultimately reaching long-term Income, Lifestyle, Wealth, and Equity goals. Part of Franchise Source Brands International™, AdviCoach and its sister company The Entrepreneur’s Source® dominate $1.5 billion industry with a commanding 33 percent of the business coaching and consulting franchise market in North America. For further information, visit http://www.advicoach.com/.
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