In Japan, businessmen work for the market value of their companies. With this aspiration are associated all strategies aimed at business development, investment and promotion. The established "mentality" of Russian entrepreneurs is aimed at making a profit. The desire for this sometimes leads away accents not in favor of the growth of the company. The Japanese businessman always knows the market value of his enterprise and is interested in increasing it.
Data that affects cost is labile, so it is monitored and analyzed regularly. Some companies monthly. When the question of how to sell a company arises before our businessmen, the first deadlock arises: what is the price to set?
In Russia, meanwhile, ready-made companies are often offered on the market, but sometimes for various reasons, the seller is forced to go to a huge discount in order to get rid of ballast. Why it happens? In a business sale, as in any other sale, presentation and a profitable platform for finding customers are important. And of course, the goods themselves are ready-made companies.
Why sell a business
There can be many reasons for selling a profitable business. Such a decision of the entrepreneur may proceed from the fact that, by reinvesting, he does not manage to accumulate sufficient profit. Personal motives are frequent: moving, disagreement with partners, or ordinary tiredness. Sometimes businessmen run several projects and they are ready to sell one of them in order to free up resources for the sake of others' growth. It happens that the owner simply does not know how to further develop the company or he does not have money. Less common are entrepreneurs who specifically build a business for sale.
How to sell an LLC as expensive as possible
It will not be possible to cheapen only in case of an accurate and correct estimation of the value of the company. To do this, it is recommended to prepare a code analysis, including the strengths and weaknesses of the business, its capabilities and the forecast of danger.
Company strengths may include:
- business automation;
- turnover of goods;
- number of customer acquisition channels;
- uniqueness of the channel to attract customers;
- long business life, from 4 years;
- Interesting business sectors
- the difficulty of creating analogues;
- the presence of regular customers.
Weak sides:
- low margin of goods;
- many competitors;
- high cost of attracting one client;
- lack of signed contracts with suppliers;
- "Gray" scheme of work;
- weak management reporting.
Opportunities:
- opening representative offices in other cities;
- cost reduction for marketing, logistics.
Hazards:
- state level - for example, the work of the business according to the “gray” scheme or unlicensed activities;
- employees - leaving the company together with the client base;
- suppliers - delay in the supply of goods, price increases;
- competition;
- industry level, etc.
Analysis of these points will help to understand what is the value of the company and how to sell LLC. The vault analysis technique is simple, but extremely effective in many situations.
Cost calculation
How to sell the company at an adequate cost? Today, Russian businessmen do not have a single formula by which to calculate the value of the company. However, large brokerage agencies, relying on Western and European experience, have implemented a calculation scheme containing indicators:
- Average monthly profit.
- The value of tangible assets.
- Market payback ratio.
Usually the cheapest are online stores and companies for various services.However, car washes and beauty salons for several years in a row in the top of the most popular and quickly leaving the market. Demand is also for hostels.
Ways to sell
How to sell a company? Two factors influence the sale of a business: “packaging” and the reach of people who find out about your offer. In fact, many entrepreneurs mainly use three methods: via the Internet, using brokers and selling by video.
For sales via the Internet, you should choose only the promoted websites of online ads or specialized business portals. Otherwise, it will take a very long time to wait for its buyer, or even it will not be found at all. The speed of online sales is largely dependent on the reach of your ad.
The content of the proposal is also important. The more you describe your business, the more you will interest a buyer. But still, do not lay out all the numbers and subtleties - light understatements will become an intrigue. Equip your ad with quality photos. They should illustrate each stage of production, attach a photo of equipment and machinery, interior and furnishings.
The method of selling over the Internet is acceptable for small companies. There is no particular hope for a suitable client, therefore it is more efficient to use other methods. For example, sell a business with a broker.
As soon as an ad appears on the Web, agents are usually the first to respond. The most active are ready to offer the client already at the first call. Take your time and do not sign an experimental contract for the right to sell. Why? By signing this agreement, you have to give the broker a commission, including when the client was found and the transaction itself was completed without his participation. Typically, the commission is 7-10%.
When a broker connects, the business rises in price due to these percentages. For example, your company costs a million rubles, with a brokerage margin - 1,070,000 or 1,100,000. At the same time, the value of the company itself does not increase, but the speed of sale decreases. Therefore, the owner is offered to initially lower the value of the company by the estimated brokerage interest.
Today, a more effective way is developing - selling through video. So the buyer can remotely consider your offer. After watching a video presentation about the company, only those interested in the company will call you. Video saves time and illustrates business in detail. It is easy to post on social networks and reach the attention of the target audience. As a rule, the sales speed in this way increases by 2-3 times compared with the previous two.
How to legally sell a company
The use of gray schemes in business negatively affects its profitability and sales results. Today, companies that are legally operating in all respects are mainly putting on the market. There is no demand for others. The first step is preparing the business for sale. Next, you will need to draw up an explanatory note, calculating the cost, determining the conditions of sale and preparing for negotiations.
When preparing a company for sale, it is necessary to put in order all financial documents, conduct an audit and inventory, as well as a reconciliation report.
If you doubt your own calculations of the value of the company, hire an audit company.
Preparing a business for sale
Often brokers give advice to keep the decision to sell the company a secret from subordinates and competitors. But confidentiality is possible only if buyers are not sought on an open and public platform. Why is it better not to talk about company sales plans? This can scare staff who will start to quit. Banks may require early repayment of the loan, customers will not come for the goods and refuse the services of your company. Theft and theft are not ruled out.
The price of a business, of course, is determined by the market. But a rare client will agree to a deal if the company’s value is not confirmed by documents, and also if the transfer of business rights does not comply with the law.
Tax Debt Firm
How to sell a company with tax debts? Firms with a “load” of debts to the Federal Tax Service are sold in units. Legal, not fictitious. If a train of unpaid taxes is reaching for your company, and you want to sell it like that, then take the trouble to find a real buyer, not a fake one. Although it will be extremely difficult to do this: who will assume the obligation to cover debts? And if you sell the company to a fictitious client, then the previous owner will face sanctions: the company is liquidated and debt collection is initiated. A criminal case is not excluded.
Transactions on debtor companies are mainly concluded in order to avoid a tax audit.
Company with turnover
How to sell a company with a turnover? In order not to miscalculate, it is better to contact specialists for an assessment of the value of the company. This begins the process of preparation for the sale, then you need to go on the search for a buyer. It is also advised to use the services of consulting agencies.
The greater the turnover of your company, the faster the client will be and the more profitable the transaction will be for you. When presenting your business, be sure to indicate how many years your business has existed, how the work is delivered, what supplies and in what quantity are completed, indicate growth prospects, etc.
A transaction with a buyer can be formalized by a contract of sale or through a procedure for changing shareholders. These are the only legal ways to sell companies with turnover.
Zero Firm
How to sell a “zero” company? As a rule, companies with a zero balance are liquidated. It is difficult to reorganize them, it is impossible to declare bankrupt - there is no profitability. It remains to close. However, you can try to sell the LLC and make a profit. The ways of finding a client for “zero” firms are no different from selling other objects. It is necessary to pay off debts to banks and the budget. Clients are mainly sought after by experienced businessmen who can take control of a finished business and make it profitable.
How to sell a company safely
If you are selling a company, what about the account? A frequent question in the circle of business sellers. And it is better to know the answer to it. Scammers may interfere with your transaction, so never respond positively to requests for a current account, no matter what pretexts you bring. Most likely, such a desire is associated with the inability to do it yourself. It’s better not to go into the reasons for this, and if you decide to continue to work with such a client, first enter a new owner, and only then leave the founders of the company yourself.