It’s every business owner’s dream – multiple bids on the table and the value of your business keeps flying higher and higher.
Unfortunately, bidding wars aren’t all that common when selling a business. Many owners will only come across two or three interested parties that have very different visions for their company.
And frequently, those offers will come along at different times. But, it is possible to entice a bidding war.
Ensuring that you have multiple viable offers on the table at the same time is all about creating the perfect storm and holding your ground. Check out these tips for help getting started.
1. Demonstrate Your Recurring Revenue
Companies that have multiple buyers fighting over them often have steady and provable recurring revenue streams.
If you want to create a bidding war for your business, you need to be able to show buyers that they will be able to make a profit immediately after making the purchase.
If you’re having trouble demonstrating to buyers that your business has value for them, consider adding subscription services to your offerings. Subscribers help your businesses ensure future sales.
2. Create Unique Positioning in Your Marketplace
If your company is just like many others on the marketplace, it’s difficult to demonstrate to a buyer that you have value. Try to find ways to make your company appear more unique to buyers, even if you’re in a saturated industry.
For example, if you are selling your cleaning business, you can separate yourself by using the latest booking technology. You can also make corporate social responsibility choices like paying a livable wage to your employees and using organic and low waste cleaning products.
3. Time Your Sale Perfectly
Putting your business on the market and getting top dollar is all about timing. Talk to a business broker about your industry and goals well in advance of listing in order to maximize your sale value.
Every company and industry is different. You’ll also need to take into consideration your personal needs and goals. Speak to a professional today.
4. Use Multiple Valuation Strategies
The more valuation models you use to demonstrate your value to a potential buyer, the more confident they will be in investing in your company.
Consider using multiple methods to measure your company. Take into account your inventory in various locations, the value your team and technology adds, as well as your existing billings and revenue streams.
5. Don’t Over Play Your Hand
If your strategies pay off and you do get multiple offers on the table, make sure that you don’t over play your hand. Take the offers seriously and choose a buyer that is well-qualified and ready to make a deal.
Dragging out the process by trying to entice other buyers to bid higher can cause you to lose out on all the deals if you’re not careful.
For More Help Selling Your Business
Creating a bidding war for your company is an art form. In order to become successful, it takes a lot of experience.
Fortunately, at Dolan Sales, we have the tools and techniques in our wheelhouse to maximize the value of your business through the creation of a bidding war. Contact us today for more help.