Is Your Business Ready to Sell?
Are you planning to sell restoration business? Is your business ready to sell?
Probably not! Most aren’t!
Stop for just a minute and give me the chance to tell you how you can double your sales price in just two years!
That’s right. Selling your restoration business is all about being ready to sell AND getting top dollar for your sale.
How do you do that? You need growing revenue, improving per job profits, strong adjusted net profits, and the best industry multiple possible.
Here’s how you sell for top dollar.
- Buyer’s want a growing company not one slumping in sales. If you don’t have a plan to accelerate your top line revenue growth and sustain it over the next several years, you won’t get top dollar.
- You must earn per job profits at the upper end of the industry average. Not only does this increase cash flow, cash reserves, and your personal wealth – it also demonstrates that you have a quality internal operation that produces those profits. If not, there is something wrong with your operation and that will hurt your sale. You should be able to achieve a 75% profit on your mitigation and as high as 50% profit on your reconstruction services.
- Your annual net profit plus sellers’ discretionary expenses (owner salary and draw, personal benefits, allowances, etc.) leads to a final number to which a multiple is assigned and that is your potential sales price of your business. The greater the net profit the higher the sales price. Buyers are less interested in the revenue you generate than the profit you keep.
- The industry multiplier is determined by how well the company achieves the first 3 factors. The industry multiplier range is 2 times to 3.5. Imagine the difference this range can make – for example, if net profit plus seller’s discretionary expenses equals $1 million and your multiplier is 2 your sales value is $2 million but if you are really doing well and running your business like a pro your sales price could be increased all the way to $3 million to $3.5 million – that is a huge difference.
That is why I ask – is your business ready to sell??
If you take your current year as your base and allow me over the next 2 years to help you accelerate your revenue growth and improve your internal operation to achieve higher profits you can double the top sales dollar value of your business.
BUT STOP – if you are a mitigation-only contractor and plan to sell your business I have the most transformational opportunity imaginable for you. If you add construction services over the next 2 years you can double, even triple your top sales price – in just 2 years! Yes, you can!!
Look at the numbers: If you are a $1 million mitigation only company you are doing approximately 400 mitigation jobs a year. If you captured the rebuild for each one with the average reconstruction invoice of $10,000 you could add $4,000,000 of revenue and at 50% profit you could earn $2,000,000 in additional profit. WOW!!
These numbers are on the high end of the yield but each one is achievable. You have to do everything right to get there – but you can! What would happen if you only reached 90%, or even 80% of your potential – you still win in an amazing way!
All this is true. Adding rebuild services is not that hard to do and at the end of 2 years you would have a fully operational construction division that has transformed your business and your potential sales price.
Let me ask you – Is retiring to the life you have always dreamed of having worth a 2-year investment of time?
Your business isn’t ready to sell until you have made it ready and then you can retire to the life you are dreaming of.
Call me at 800.655.1598 for a FREE 30 Minute Consultation and let’s talk about your plans and how to get top dollar for your business sale.
Reference: 9-Month Coaching Plan; The Business Transformer – Double, Even Triple your Business in 18 – 24 Months
Subscribe and receive our weekly blogs in your email inbox at http://growmyrestorationbusiness.com/blog/ – scroll to bottom of the page.
Comments are closed