If you are wondering if you should sell your garage door business, then a garage door valuation is a must. There is nothing you can do that is as simple yet profound when it comes to selling your business.
How do you value a garage door business? First you need to determine the cash flow, and then investigate the multiples of the cash flow that the prospective buyer is willing to pay. This is certainly not difficult to calculate, but it has far-reaching ramifications.
There are certainly many intricacies when it comes to your garage door business valuation, but the most important variable is your cash flow. Certainly the EBITDA, the adjusted EBITDA, the add-backs, and the SDE (Seller’s Discretionary Earnings) bear some weight in the equation, but the cash flow will tell you everything you need to know about your garage door business worth. Though some business owners consider the positive tax ramifications of owning their own business, cash is king.
“How much is my garage door business worth?” is certainly a reasonable question to ask.
Compare the adjusted cash flow to the size of your business when it is time to determine the garage door business worth. It makes sense that the higher the cash flow, the higher the multiples.
If you are pondering “How much is my garage door business worth,” simply multiply the free cash flow by the multiples to determine your garage door valuation. There are a few tagalong ideas to consider. When selling your business, understand that the investor will likely want to buy all the materials needed to run the business, such as equipment and vehicles.
Additionally, buyers require a debt free sale, so you need to take care of any outstanding bill before you sell. Lastly, consider the variety of fees you must pay in order to sell the business. Expect to pay 25-30% of the sale price in fees.
Consider the cash flow when it comes to the valuation of your garage door company. If you want to keep the cash flowing to net the best sale price possible, you would be wise to take some help with the sale of your business.
Brentwood Growth understands your garage door business worth, and will find a buyer in its vast network to get you the payout that you deserve.
Contact us today and let our expertise and experience guide your sale.