Getting Pumped Selling Businesses : Total Athlete Nutrition – Sold March 28, 2018
Justin Sandridge
Tyler contacted Murphy Business because he was ready to sell his business and move on to another opportunity. Tyler is a young man and built a great company in just a few short years. He grew the business to a level that would provide him the funds to start his next venture.
Tyler found Justin Sandridge through his Google reviews and mutual friends on facebook. The next day, Tyler was in the office and listened to the broker's opinion on selling this business quickly. Tyler signed the engagement agreement the same day (January 30, 2018) and we had the company under contract in a few weeks and later closed on March 28, 2018.
Some people believe that selling retail is tough – it's not. What is tough is running a retail business efficiently.
If you are in retail take a few pointers from Tyler to sell your retail business quickly and for top value:
For every square foot of retail space, you should have $500 of sales annually to get maximum value. For example, if you have a 1000 square foot store, it should generate $500,000 of revenue.
Do not have too much inventory. Find out what the average inventory turn is for your industry (google search). Once you get that number, take your total COGS divided by your inventory turn and that will tell you how much inventory you should have. A buyer won't pay for excessive inventory.
If your inventory has dust on it, liquidate it! A buyer will not buy items that do not sell.
Keep sales up! Don't sell on a decline. No one will pay top dollar for a business that is showing weakness year over year.
