EP 197 | Looking to Sell? What is Your Business Worth? | Guest: Tony Hokanson & Lars Johnston

Chad Lingafelt chats with Lars Johnston of Calgary Lock & Safe & Tony Hokanson of Assured Security all about Business Acquisitions.

Today we are getting a little niche within the Security Industry with our expert panel to talk about Acquisitions.

Are you are looking to retire and want to evaluate your business to see what it would be worth in the open market? We are diving in head first with tactile tips you need to know to find out What’s it Worth!

Chad, Lars, and Tony have all experienced multiple business acquisitions (at least 5ish) and today they share their knowledge and experience with you! Buckle in for a in depth conversation so full of information about acquiring a business that we had to split it into 2 episodes. (See Part 1 to learn how to acquire a business).

In part 2, we discuss some of the things you need to consider when preparing your business to be sold. Are you looking for an exit? Tired of dealing with the day to day struggles and headaches that come along with running a business?

Good News! You’re in the right place today!

We learn about Free Cash Flow (Discounted Cash Flow) and what is it worth on the open market and to the buyer.

Purchasers are looking to make 20-30% over what they are paying the bank to make it worth the risk. Here are some tips that you need to know to get your business in order so it would be appealing to purchase!

First Thing you Need to know is Your Business is Only Worth what someone will Pay for it!
Get Your Books in Order! If it’s not on the books, does it have value? You have to have clean financials and show profitability before it will be touched by a potential buyer.
Inventory List: Do you even know what you have - Is it a pile of stuff in a warehouse that requires someone 100 hours to audit? Is it listed and categorized?
Assets: Vehicles, Equipment, Real Estate - All must be accounted for, Itemized, and a current Value noted.
Cash & AR: Always Negotiable and not always acquired in a sale.

Do you have an emotional attachment to your business? Are you basing the sale on Dedicated Customer Base and “Potential”? These are signs that your business might not be structured in a way that it can even be acquired.

This is a great conversation for folks looking to sell their business to a potential buyer.

Looking to Sell Your Business? Connect with Chad Lingafelt for an Exploratory Call.

https://www.businessmeeting.online/schedule-time-to-meet