TX BUSINESS BROKER & COACH :: 830-370-3714
  • FREE Exit Planning Starter Kit
Picture
Let's Chat!

Why the size of your business matters

4/14/2020

Comments

 
​The size of your business matters. Why? Because it affects how quickly your business is sold. And in these uncertain economic times, how quickly your business sells matters now more than ever. 

Each transaction matters when you’re selling a business, regardless of what tier it falls into (mom and pop, main street, large corporation, etc.) As a premium main street business, you can’t exactly advertise that your company is for sale. These sales must remain confidential so that you don’t upset the balance of the business’ economy. So let’s walk through the various sizes of companies and what you can expect when selling one.
Solopreneurs

Small companies face unique challenges in a sale because it is hard to place a value on a business that is so tightly wrapped around one to three people. These businesses also do not have the revenue that supports a higher than average business valuation. I suggest getting your earnings up to $500,000 annually before you consider selling your company. The opportunity cost generally isn’t worth it for anything below this number.

Small Businesses (Premium Main Street)

Small businesses with 5-50 employees, or premium main street businesses as we refer to them, will compile a confidential business review when selling. They will send this out to interested business buyers, highlighting their selling points.These companies take their business revenues to determine valuation and come up with the most probable selling price. They then have this information available to prospective buyers after they sign an NDA. When buying one of these companies, buyers can get funding up to $5 million through the SBA to fund the purchase.

Medium-Sized Corporations

Selling larger corporations are drastically different and significantly more complex than smaller companies. These corporations tend to have large, multi-person boards, public shareholders, and huge staff. 

All businesses are valued on how a buyer sees risk. Don’t just assume your company is worth something because that’s what one person told you - seek out an expert, like myself and my team.

Want to know more about selling your business in this new economy? Reach out today and let’s chat.
Comments

    Author


    Not Your Grandpa's Business Broker

    ​Katie Milton Jordan has owned and operated 5 small businesses (and counting). She’s currently a Producer at a boutique business brokerage ensuring women entrepreneurs command a complete package of what it is they actually want.

    Read more...

    Archives

    August 2022
    March 2022
    February 2022
    December 2021
    July 2021
    June 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    April 2020
    March 2020
    February 2020
    January 2020
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    March 2019

    Categories

    All
    A Free Session
    Social Break Series
    Start Here.
    The Art Of Giving A Damn
    Top Sins Of SMBs

    RSS Feed

Home
About
Sell a Business
Buy a Business
Contact
Blog
Newsletter
FREE Biz Valuation
Terms, Disclaimers, Privacy
TREC Consumer Notice Form
​TREC Information about Brokerage Services
Picture
Katie Milton Jordan :: Texas Business Broker
222 Sidney Baker Street South Suite 213 
​Kerrville, Texas 78028
Open M-F 9am - 5pm & by appointment
830-370-3714

Picture
Picture
Picture
Picture
Made with ❤️ in Kerrville :: Soon to be the Small Business Capital of Texas. 
  • FREE Exit Planning Starter Kit