In this interview, we speak with Steven Siefert, Accredited Senior Appraiser and Business Valuator at Baker Tilly Virchow Krause, LLP, located in Milwaukee, Wisconsin. Anyone who is thinking of selling a business will want to pay close attention to this interview. Here, you will learn about the most important things you can do in order to build business value before a sale. Mr. Siefert points out which types of buyers are likely to pay more for a business. He shares with us his expertise regarding topics such as the different types of business appraisals, the ins and outs of structuring a business sale, and the critical role of timing in the sale of a business.
Key Points from our Conversation
- For potential sale purposes, I would recommend getting an initial valuation a couple of years before a planned exit.
- Generally speaking, private equity groups tend to pay somewhat less for a company than strategic buyers.
- The best way to get a premium value for your business in a sale is by marketing your business to many different potential buyers.
- Giving potential buyers flexibility with regards to your ability to stay on with the business during the transition period will generally increase the value.