How do I sell my professional services business?
1. Sell as You Serve: Great service providers create better futures for their clients that the clients didn’t know were possible.
- Ask questions.
- Provide expert opinions.
- Work hard.
- Prepare.
- Are accessible.
- Build creative solutions.
- Deliver what you say you’re going to deliver.
- Develop relationships.
What do professional services firms sell for?
Sales multiples typically range from 1.3x to 2.2x revenues, depending on profitability. Professional service businesses are highly profitable; typical profit margins range from 15% to 30% on revenues (EBITDA). Accountancy and law firms are primarily acquired for the value of their existing clients.
How do I sell my professional services online?
Here’s how to sell your professional services online:
- Sales tip 1: Package your services like a product.
- Sales tip 2: Position yourself as an expert.
- Sales tip 3: Establish sales & service processes.
- Sales tip 4: Provide great services that market themselves.
- Sales tip 5: Showcase social proof.
How do you value professional services?
Professional service firms receive their value from the services they provide, typically relying less on tangible assets. Intangible factors such as customer relationships, staff expertise, and reputation play larger roles in the value of a professional service firm compared to other industries.
How much is my consulting business worth?
Multiply your chosen earnings multiple by the owner’s annual discretionary cash flow to arrive at the firm’s value. Industry consensus seems to be around 0.75 to 1.25 for an earnings multiple in a smaller consulting business.
How do I sell my consulting firm?
The 10 Steps To Sell A Consulting Business
- Get a certified business valuation.
- Work to increase your value (if needed).
- Continue to run and grow the firm through the process.
- Define an exit strategy for yourself, your investors, and your employees.
- Identify a handover and growth strategy for potential buyers.
How do you value a consulting company?
Generally, brokers, appraisers, and financial experts use some or all of the following to determine your consulting firm’s value:
- Annual Sales (Revenue)
- Net Profit.
- Annual Average Growth.
- Position in The Market.
- Customer Funnel.
- Physical or Operational Locations.
What multiples do consulting firms sell for?
Industry consensus seems to be around 0.75 to 1.25 for an earnings multiple in a smaller consulting business.
How do I sell my consulting business?
How do I sell my consulting?
Let’s dive into 12 expert methods you can start using today to boost your consulting sales:
- Use the skills you already have to sell consulting services.
- Set up a clear sales process.
- Prioritize leads that fit the right profile.
- Be prepared to turn down work that doesn’t fit.
- Learn how to find the decision-maker.
How do you value a small professional service business?
The most common business valuation methods used when valuing a professional practice are:
- Excess earnings (hybrid of an asset and income approach)
- Discounted cash flow or capitalized cash flow method.
- Guideline transaction method (i.e., market multiples from similar transactions)
How much can you sell a consulting business for?
If you take a look at the chart, you’ll see most of consulting business sold in the past five years were negotiated for less than $250k. In second place is $250-500k deal size. The higher the price typically means the higher the multiple.
How do you value a small consulting company?
How much do consulting businesses sell for?
If you take a look at the chart, you’ll see most of consulting business sold in the past five years were negotiated for less than $250k. In second place is $250-500k deal size. The higher the price typically means the higher the multiple. But frequency is much lower than the smallest categories as well.
What is my consulting company worth?
How do you sell client services?
To sell your service you’ll need to sell your experience and expertise. Write blogs, do interviews and engage with customers one-on-one to build trust. You’ll also want to invest time and energy into building your network. Spend time on social media like LinkedIn and invest in publicity.
How much does a service business sell for?
A business will likely sell for two to four times seller’s discretionary earnings (SDE)range –the majority selling within the 2 to 3 range. In essence, if the annual cash flow is $200,000, the selling price will likely be between $400,000 and $600,000.
How much is my service business worth?
The formula is quite simple: business value equals assets minus liabilities. Your business assets include anything that has value that can be converted to cash, like real estate, equipment or inventory.