Would Your Business Get Top Dollar in a Sale? 

Would you like to get top dollar for your business when you eventually sell it? If so, you will need to start preparing now. It usually takes about five years to get a business ready for sale, so the sooner you start, the better. Many business owners fail to think about how to increase the business’s value before putting it on the market. This mistake can cost you dearly.

Whether you plan to sell soon or you are simply readying your business for a possible sale in the future, it is crucial that you evaluate your business and take steps to make your business as attractive as possible to buyers.

Increasing The Value of Your Business in Preparation for a Sale

There are several things you can do to make your business more attractive to potential buyers and maximize the proceeds from the sale. Investing in improvements and expansions and making sure that the company is run efficiently and profitably can increase the value of the business dramatically. It is usually a good idea to work with an expert in business evaluations long before putting the business on the market. This allows the business owner to better understand how various strategies increase the business’s value and keep track of the company’s growth.

In many small and mid-sized businesses, the business owner wears many hats. He or she takes on everything from sales and marketing to human resources. One strategy for increasing your company’s value is to delegate tasks to others so you can focus on big-picture concerns, including finding avenues for growth and improvement. As you redistribute responsibilities, you may find that you need to upgrade, expand, or modify your existing team. Acquisitions or strategic partnerships with other companies can also substantially increase your company’s value.

Another way to make your business more appealing to buyers is to create a solid plan for the future. Buyers will want to see that there is a clear path ahead for the company and that it has a good chance of continued success. Consider implementing long-term contracts with customers. This will ensure revenue streams and decrease the risk for potential buyers.

Lastly, go over your financial statements in depth with your CPA. Make sure all financial statements are clear and understandable. This way, if the right opportunity comes around, you will be ready to jump on it.

Call Us for Help

If you plan to eventually sell your business, start strategizing now. The Naperville business law attorneys at the Gierach Law Firm can help. Denice Gierach has written several articles about increasing the value of your company in preparation for sale. She and the rest of our team can address your needs and help you grow your company.

Call the Gierach Law Firm at 630-756-1160 for a consultation to learn more about our services.

Sources:

Daily Herald

Forbes