Whether it is time to sell now or if you are planning to sell in the future, there is always work to be done to prepare a business for sale. Here are five steps to take to increase the value of your business and entice the right buyer.
Improve Balance Sheets
Get tough on clients who have outstanding accounts and ensure that your business has as much money in the bank as possible. A successful business runs on a steady flow of money and without that, your business may not be desirable to an outside buyer. Be careful not to take money out of the business as you prepare to sell.
Take a hard look at your operating costs and see if there is room to make any cuts. Look for areas where you can cut expenses without hurting the productivity of your business. Perhaps you are paying high premiums for a software that is underutilized, or you have been using a supplier who charges quite a bit more than the competition and should consider making a switch in order to cut your costs. There are always ways you can lower your expenses without lowering your product or service quality, you just need to proactive and receptive to the changes.
Seek the Advice of a Professional
You are the master of your own business, but you may not be the master at maximizing your business’ potential. The financial advisors at The Beacon Group of Assante Financial Management Ltd. can help you review your financials and show you where you can make improvements. It is best to have a professional on your side to ensure you receive top dollar for your business come sale time.
Continue to Invest in Your Company
Just because you are seeking a buyer for your company doesn’t mean that you can walk away from it and let it deteriorate, especially if you are seeking top dollar. If your company requires new equipment, provide it. If maintenance is required in order for things to run smoothly, provide it. Do not let your desire to sell hurt the growth and stability of the company.
Build Up Your Brand
There are few industries without competition. Make your company stand out from the rest and be an example in your field for what success really is. Make your company look desirable to potential buyers through marketing and brand development. A buyer will be more interested in buying a well-known company with an established reputation as opposed to one with no presence at all. Even if your plans to sell are off in the future, keep in mind that planning can start early and getting your brand to be recognized as an industry-leading company is a fantastic way to begin.
For more advice about maximizing the value of your business as you prepare to sell, consult with your financial advisor at The Beacon Group of Assante Financial Management Ltd.