A well-constructed Business/Succession Plan demonstrates a business owner’s willingness for thorough planning. As a result, a DaltonPlan® business action plan will make it easier to sell your business in a saturated seller’s market.
Banks and other lending institutions are now insisting that clients produce a business/succession plan as a means of minimising the risk of business failure underpinning their more stringent lending criteria. They are aware that the current number of self-employed 45-65 year olds in the population will be wanting to sell their businesses to 25-35 year olds on reaching retirement age at 65.
The problem is that there is currently a significantly lesser number of business buyers than sellers in the population, as shown in the graph below.
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As a result, for example, corporate organisations that have privately owned businesses as customers, like trading banks, could experience a possible 30% reduction in their current number of business customers.
In order to retain as many customers as possible, banks will be more willing to lend to potential buyers wanting to purchase businesses that already have a well-established business/succession plan in place. This will make it easier for business owners to secure a sale at a fair price in what will become a saturated market. This will also result in a more successful outcome for business buyers through business continuity.
Businesses owners who have engaged my services to develop a DaltonPlan business plan with the aim of selling their business have achieved great results – one particular client sold their business for $50,000 more than the valuation based on the clarity and structure of the business plan. Another client ended up selling their business for twice the initial offer based on guidance from DaltonPlan® and the transparency with which the business plan demonstrated the value within the business and its future potential.
So give me a call to discuss how you can sell your business for the best possible price.
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