Strategy #3: Develop A Strong Management Team.
The old saying, “Your people are your most valuable asset,” holds true when selling a business. Buyers interested in purchasing your business will look closely at your employee and management infrastructure. The quality of your staff is always a major factor when determining the value of your company.
One of the strongest indicators is the quality of your management team. You can begin building a solid management infrastructure by offering incentives that inspire key staff to take the initiative and remain loyal to the company. If you plan to sell your business based on tangible assets and financials alone, it will usually result in a minimal offer from buyers. But a strong management team with a documented track record will always increase the value of your business when it’s time to sell.
Often I talk to sellers who are very concerned about their staff after they sell. Buyers view the staff as THE major asset of the business. The vast majority of buyers into the restoration field come from other fields and they need to rely on the employees you leave behind. Building a strong management team can add a great deal to the price your business will command.