Business Valuation Guide
Preparing Your Company for Sale
Preparing your company for sale is a process of planning and implementing strategies that enhance the selling value of your business. All companies have strengths and weaknesses and their unique mix establishes how valuable the business is to your buyer prospects. Here are some key areas that can define the value of your business and its potential to command the maximum selling price:
- Business earnings track record.
- Industry and business growth prospects.
- The quality of the management team.
- Business’ competitive position in the marketplace.
- The types and uniqueness of products and services offered.
- Overall desirability of the business.
- Business organizational structure and procedures that make it easy for the buyer to take over.
Just a few well-planned actions can help you attract a lot of qualified buyer interest and justify a much higher selling price:
- Preparing and maintaining a clean set of business financials.
- Documenting your business procedures.
- Hiring a manager that can replace you upon your departure.
- Attracting and retaining skilled employees.
- Face-lifting the premises.
- Adding new products and services.
- Signing up more customers.
- Offering attractive seller financing terms.
- Pre-qualifying the business for a government backed or commercial acquisition loan.
ValuAdder helps you identify and prioritize the areas that will have the greatest positive impact on selling your business successfully.
Using the industry standard Multiple of Discretionary Earnings method with its set of 14 valuation criteria, ValuAdder enables you to rank your business in each key area, then quantify how high impact improvements can maximize your selling price.
For example, did you know that positive business growth prospects can make a difference of 10% or more to the selling price?