If you hope to sell your business within the next ten years, there are key actions that can increase its value to the buyer.
Here are five factors that can dramatically increase the value of your business at exit.
5 Keys to Increase Your Exit Price
1. Maintain organized, clean financials.
Providing financials that are up-to-date and well organized is the starting point to selling your business. If you ever hope to sell your business, begin NOW to ensure that your books are squeaky clean.
2. Show increasing year-over-year sales.
The increase doesn’t have to be huge, but if your sales are on the uptick even a little, a buyer will have the sense that yours is a growing concern.
3. Have key people who will stay in place.
A buyer will place tremendous value on key employees who will stay after the sale. In particular, those who oversee operations, as well as vendor and client relationships.
4. Provide a formal org chart and accompanying job descriptions.
An org chart that clearly defines every key position, along with the names of individuals filling those slots will add value to your business. In addition, be sure you have a complete job description for each employee.
5. Develop formal procedures and processes.
Procedural and training documentation indicates a well-organized business that can replace and train employees effectively. This documentation will increase the value of your business to the buyer.