Is your letting agency on the up?

While your current profitability is really important for a buyer, they will also want to know what has been happening in the business over the last three to five years. They will want to see data showing your trends in turnover, profit, costs, assets, liabilities and market share.

If your business has been consistently growing over the past few years in turnover, profit, assets and market share, this will show a dynamic and expanding business, and one that is attractive to a buyer.

On the other hand, falling turnover, assets and market share, or rising costs and liabilities, will be warning signs for any buyer, regardless of the levels of profit in the business. A business in decline would need good explanations, and reasons why a buyer would not expect to see those downward trends continue, and would value the business accordingly.

If your business has been consistently growing over the past few years, this will show a dynamic and expanding business, and one that is attractive to a buyer.

If you can be flexible about when you sell your letting agency, then you can work to develop positive trends in the business and look to sell when these trends have been demonstrated for a couple of years. This will generate the most interest in your business and the best sale price.