5 Steps to Take Right Away to Increase the Future Sale Value of Your Business

Running a business takes a lot of work. If you are a business owner and think the time may be approaching when you’ll want to sell the company sometime in the next few years, it is a good idea to start preparing now. There are many steps you can take today to increase the value of your business in years to come. The following five steps will help you to get as much money as possible when you decide to sell.

Create a Long Term Strategic Plan

Creating a strategic plan for the company that looks out 5-10 years is a great way to increase its value. A potential buyer will be able to look at the plan, which you’ll be several years into by that point, and see the potential. Having this type of plan in place will also help set you up for success down the road if you decide you don’t want to sell.

Keep Accurate Financial Records

This is something that all business owners should do regardless of their intentions to sell. Too many business owners keep poor quality records. When a potential buyer comes along, they are going to be very hesitant to buy if they can’t see exactly how much money the business is making or losing at any given time. If they do decide to buy, they will demand a significant discount for taking on the added risk of a business that doesn’t have proper financial records.

Create a Strong Management Team

When a business owner sells a company, they almost never stay on to handle the management side of things. If someone comes in to buy your business, they typically won’t want to act as a front-line manager. With this in mind, you can significantly increase the value of your business by making sure there is a strong management team in place so the new owner doesn’t have to worry about a thing.

Streamline Day to Day Operations

Someone who is considering buying a business is not going to pay a premium if they have to come in and change the way everything is done. The buyers who can pay top dollar are the ones who want to buy a business that is already running smoothly. Start putting policies and procedures in place to ensure employees are working efficiently, and the day to day business operations are handled.

Cut Unnecessary Expenses

Improving profit margins is a great way to attract motivated buyers, and one of the best ways to do this is cutting unnecessary expenses. Identifying any type of waste that occurs in your business and taking steps to reduce or eliminate them will help make your business much more attractive to buyers, which will help to drive the price up when the time comes.

Consult an Attorney

Whether you’re thinking about selling your business right away, or not for a few years, it is always good to talk with an experienced business attorney. We will be able to look over your company from an outside perspective and provide insights on how improve the potential sale price. When the time comes, we can also help to write up any needed contracts and ensure the sale goes off without any trouble. Get in touch with APH Law, PLLC to go over the details of your business and what we can do to help you prepare for a future sale.

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Written by APH Law PLLC

APH Law PLLC

When we founded APH Law PLLC in 2010, we did so out of a desire to connect business owners with more and better opportunities. No matter what industry you’re operating in, creating a strong foundation, preparing for the future, and protecting against challenges are key to long-term success. It is this kind of support that we take tremendous pride in helping businesses.