Maximising Business Value before Exit
If you have made the decision that you want to exit your business by selling, then you will want to ensure you get the best sale price possible. Whether you intend to sell next month, next year or even in ten years’ time there are strategies you can put in place to maximise the value of your business and they fall into three main areas.
Operations
Operations is often thought of as the delivery of your product or service to the customer, but in this instance, it includes every part of your business from sales and marketing, to IT, HR and finance.
You will hear many people say that one part of the business is more important than the others – usually people that work in that part. For example, your Head of Sales might say that without Sales, Operations wouldn’t have any work to do and Finance wouldn’t have anyone to invoice. Which is true of course, but without Operations the work wouldn’t get done and without Finance you wouldn’t get paid. The same is true of HR and IT – no HR, means no people and no IT means no tech and businesses cannot run without tech or people…yet.
So, in reality ALL these aspects of your business are essential and in order to get the maximum sale value for your business they must all have processes in place, which are clearly documented, understood and running smoothly. Finally, and MOST importantly in order to sell and exit your business ALL these systems and processes must run WITHOUT YOU.
Financials
It is fairly obvious to say that the more money your business makes, the more it will be worth, but getting your financials in place is about more than just the bottom line.
Once again you need to have your financial processes in place, so that this part of your business runs smoothly, but more than this you need to ensure your financial reporting is robust.
The separate products, services or departments that make up your business need to be reporting clearly, so that you can see what makes money, what costs money and when things happen. Ensure you have maximised your revenue, but also minimised your expenses throughout your business. Ensure you have researched and diversified where possible.
Your financial records must be accurate, ready for scrutiny and you and your team must know them inside out.
Brand
One part of your business sale which is often overlooked is your brand. It is part of what you will sell and so it is essential that it is strong.
Build a strong brand presence, develop and put into place an effective marketing strategy, cultivate solid relationships with your customers and encourage their loyalty. Ensure that your brand reflects your company culture and vice versa.
Protect your valuable brand with trademarks and copyrights…your brand is not yours unless you protect it and is not valuable to your business if someone else can just come along and use it.
Although these are just three strategies to maximise business sale value getting them right can be complex and will take time. How complicated they are and how long they take depends on a huge number of factors. If you would like to know what your business is worth today and what you specifically need to do to increase its value I have some amazing tools that can tell you exactly that. To get started just book a call with me today – there is no charge and no obligation. Let’s get you started on your journey to maximising your business value and making the exit of your dreams.
