Maybe you are a business owner approaching retirement age. You began your company years ago and have grown it into the successful business it is today. It’s supported your family and others’ over the years and is doing well. Before you actually put your business on the market, however, you want to increase its value. The key to increasing business value is to understand how a potential buyer looks at your business. Here are 3 steps you can take to increase value:
First, obtain a detailed independent review of your business well in advance of exiting. The review – also called a ‘valuation’ – gives you a starting point from which to make improvements. An experienced business intermediary has the market knowledge and expertise to conduct this objective valuation of your company. The valuation report will indicate the value drivers of your business and help you determine which weaknesses to shore up.
Invest in key employees to propel your business to the next level. Buyers don’t want to purchase businesses that are dependent on their owners. They look for businesses that have well-trained staff with the capability to function well without the owner’s presence or involvement. The development of a strong management team and key employees has become more important in today’s M&A environment than ever before.
Document the key processes and procedures of your organization. This allows buyers to feel confident that the business will continue to perform the same successful services it has in the past in the same manner going forward.
Our goal for our seller clients is to help them achieve a fair price for the sale of their business, a price that rewards them for their years of sacrifice and hard work.