Fordham And Associates Reveal How To Sell Your Business During An Economic Downturn

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) December 26, 2011 -- SANTA ANA CALIFORNIA, DEC. 22nd, 2011 – Assuming that value maximization is your goal, there are really three factors that affect a seller receiving top dollar for his or her business: the performance of the business, the state of the industry or economy, and the seller’s personal timing. Thought may be difficult to get all three to align at once it may still be both viable and lucrative.

Business Performance. It is always easier to sell a business which is either growing or financially stable. Buyers will pay more for a business with a strong cash flow and a positive growth trend. If the buyer has to create the positive growth trend with his or her skills and capital, the buyer will pay less for that business over one which is supporting growth on its own.
In addition, if the company’s future success appears to be threatened by competition, technology, etc., not only may the value of the business be diminished, but the marketability may decline as well.

Industry / Economy. The climate in which a business operates, obviously can affect a business valuation and its marketability. Though the recent economic slowdown has resulted in a decline of acquisition activity, there are still many buyers looking for viable businesses. Because there are not as many viable businesses currently being marketed, these buyers are more diligent in their purchase criteria and more discriminating with their decisions.
Personal timing. My experience indicates business sales are rarely due to purely financial reasons. Quite often sales are driven by other factors: retirement, ill health, family issues, divorce, difficult competition and burnout.

Some of these events may be anticipated. Sadly, many of these events can occur unexpectedly. Thus, advanced preparation for a business sale can be a business owner’s best weapon. Obtaining a periodic valuation of the business for example, can be an excellent tool to gain an understanding of the market’s view of your company. By preparing a company for sale well in advance, the owner is well positioned to take advantage of market upswings and unique selling opportunities. Overall, your exit strategy will be more successful, benefiting you, your family, and the company.
There are dozens of variables to consider when contemplating selling your business. Most importantly, when you do decide to sell, become educated on a total exit strategy and the overall process. There is far more to selling your business than the sale itself.

About Fordham & Associates, Inc.

Fordham & Associates is a business advisory and consulting firm that helps companies, entrepreneurs and investors. Companies monopolize their market, execute what’s next, raise capital, go public, and execute turnaround. Fordham has provided solutions to 1200 companies in the United States. Fordham provides you with an assessment, free of charge. For more information, you can reach them at 949-200-7648 or e-mail at Fordhamassociates@yahoo.com

Contact: Simon Green, 949-200-7648
Fordhamassociates@yahoo.com

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