As COVID continues to impact every facet of business in America, there is good news for small business owners who are considering selling their operations.
For the third quarter, the media revenue and cash flow for sold businesses both increased over the previous quarter. Unfortunately, supplies and labor remain in short supply, driving up prices and causing shortages and decreased output.
Service Businesses
While some of this news may sound disheartening, cash flow in the service sector increased by an impressive 15%. Not only did this bump help offset declines in other industries, it’s a signal that service businesses have increased in value. That’s great news if you’re in the process of thinking about selling your business.
The reasons behind this increased value can be found in several different areas, according to Robert Flynn of United Brokers Group. Flynn’s observations include the facts that service businesses aren’t greatly impacted by import logistics problems – because they sell a service versus products.
In addition, a service based business can scale up or down without a severe loss of profit. When the two factors of a low asset base and the no customer concentration issues are taken into account, the time to sell is now.
Preparing to Sell
If you’re considering selling your small service business, or in the market to acquire one, there are steps you have to take.
Preparation and planning are two key tasks because they allow you to show buyers the financial strength of your business. Plus, when the process gets rolling, you need to be ready.
Murphy Business Sales is one of the largest business brokers in the nation, and we have a strong presence in the State of Maryland. Our locations cover a wide geographical area in Baltimore County, and we also maintain healthy relationships around the world.
This experience combined with a team of experts can help you sell a business. We’ve worked with vending machine companies, distribution companies, and those in the service arena including a plumbing and heating company.
We’ve created a punch list of best practices that will help you create a solid financial profile. Of course, we can help you compile this information.
The items below will enable you to obtain a clear financial picture of your business and its value.
When you partner with us, you’ll immediately benefit from our information gathering expertise. This allows us to present your business in the best light to potential buyers. Our services also include creating a customized marketing plan that speaks to your strengths.
We then share this, and other data, with our network of brokers who represent investors looking to purchase a small business.
From the first meeting to the final close, Murphy Business has your back. Contact us today.