5 Things You Can Do to Maximize the Value of Your Business Before You Sell

January 20, 2019
Andrew Cove

The decision to sell your business is not an easy one. However, once you have decided that that’s what you want to do, there are several steps that you should take before you officially put your business on the market. By spending a little bit of time tidying up and boosting your business, you could significantly increase its value. Here are five things you can do to maximize the value of your business before you sell.

  1. Streamline your efficiency.

When you present your business to potential buyers, you want to project an image of a well-organized, efficient business. From the manufacturing process through your human resources manual, make sure that steps for production or policy and procedures are clearly outlined and explained. The time that you take now to clarify your company’s processes will be rewarded in the future.

  1. Increase sales, reduce expenses.

Give your finances a boost by increasing your sales and reducing your expenses. Although you are probably always doing your best to make sales, now is the time to kick it up a notch. In addition to making single sales, try to find ways to create a monthly recurring sale. Your potential business buyers will love the promise of a guaranteed monthly income.

In addition to boosting sales, you also want to reduce your spending. If it’s not a necessary expense or it won’t add value to your company, try to do without it. Be very cautious about how you spend your money and evaluate whether each expenditure adds value. The overall goal when you’re preparing to sell your business is that your sales exceed and your expenses are less than those from the previous month.

  1. Renovate your building.

When you’re getting your business ready to sell, you only want to spend money on the essentials. If selling a building or business facilities is part of your business sale, you will want to perform some basic renovations. Freshen the appearance with paint (inside and outside) and updated light fixtures.

If there’s no money in the budget for renovations, hire a good cleaning company. Make sure your walls, baseboards, doors, and ceilings are wiped down. Thoroughly clean the floors. No matter what your budget is, if you have areas of damaged flooring, have that repaired before you list your business to sell.

  1. Retain key personnel.

A big part of what makes a successful organization is the people. The last thing a business buyer wants is to buy a business and have all the key people leave. Instead, talk to your key staffers and see if they will agree to stay on with the new buyers. If you are a key staffer yourself, decide how long you would be willing to work with the new buyers.

  1. Ask a pro.

If you’re still not sure what else you could do to increase the market value of your business, ask a professional. Contact an experienced outside advisor and find out if there are any other improvements you might want to make before you officially start showing your business to potential buyers.

We Can Help

The business lawyers at Cove Law can help you get your legal documents in order before, during, and after the sale of your business. Our experienced attorneys can answer your questions and help you with your paperwork. To learn more about our firm and how we can help, give us a call today at (954) 921-1121 or contact us online.

Andrew Cove
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