How to Squeeze Maximum Value from your business sale
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Current contracts, work in progress and pipeline income
If your business has current maintenance or service contracts in place, works in progress and / or a pipeline income, you are able to demonstrate to potential buyers that, on acquiring your company, they are guaranteed future earnings through work that has already been agreed.
This will help to maximise the value of your business since purchasers will be prepared to pay a premium for an opportunity that provides them with established work, saving them both time and resources.
The skills and experience of the current management and staff
When marketing your business to prospective purchasers, it is important to remember that the staff, remaining within the company, are one of your key assets. Acquirers will desire a company with an established, skilled, experienced and well-trained workforce, where possible, so it is important to highlight this aspect of your business in order to maximise value.
Similarly, having a strong management team in place, with longevity, will attract buyers and maximise value. You should be able to demonstrate that the business can continue to run successfully, without the need for your involvement, in order to prove to potential buyers that the business will remain strong following your departure.
The opportunities that exist for future growth
Prospective purchasers need to be able to see that their acquisition of your company will return a profit and one of the most effective ways of highlighting this is by demonstrating the scalability of your business; its potential for future growth.
The value multiple offered for your business will be maximised when your future growth prospects are strong and backed up by evidence of historical growth and a plan of how to achieve growth over the next 3 to 5 years. A company with a proven track record for growth will attract a premium price and competitive offers when it comes to market. Therefore, an understanding of your company’s strengths, and the opportunities it provides purchasers in acquiring a scalable business, is invaluable in maximising the value of your company.