Maximise the Value of your Business
| Firstly, you must decide on your own, what you want to recoup from a sale. Ensure this is enough to achieve your goals, whether for new venture, retirement, or supporting your family or other shareholders.
We will sense check these goals against the reality of the present valuation in the market by market research of recent similar deals in your sector.
If there is a negative discrepancy in your goals versus present valuation, unlike any other business sale agent, we will develop a plan to fill the void.
Timing is important. The earlier you contact us before your deadline date, the best chance we have of maximising value. No companies are completely optimised and ready for sale, however well run or established. There are always things you can do to improve value.
"Timing is everything"
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Always consider the timing criteria for your buyer. You may want to sell say, in 1 year. Your potential buyer may wish to acquire you
NOW to give them critical mass to achieve some of their own goals. They pay next year’s value today. Sometimes it pays to court you suitors years in advance.
“Have a car wash and valet”
Invest some money on the look of the business
- Print some new brochures (you need only do a few on Digitally)
- Ensure your reception and meeting room looks smart- a lick of paint new
- pictures should smarten this up
- Walk the whole business and clear up all clutter and mess-get a skip and fill it if necessary
- Tidy up the front end of your website with new images
Improve your pipeline
People value your business on present AND future profitability. Optimise your website to create a strong enquiry pipeline- if you haven’t the funds or time to do this- commence a short term Adword campaign to prove to new buyers there is a buying community searching for your products and services.
Reduce your overheads
This may sound obvious but you must be ruthless with ALL elements of cost.
- Make a list of all 3rd party costs and write to all suppliers asking for cost savings for ongoing business. Incentivise a good member of staff to deliver on this exercise.
- Review internal costs and staff contribution –
- Saving £10,000 pa could increase your company value by £60-100,000 - get tough!
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Improve your financial reporting
Strip out all unnecessary bonuses and expenses for shareholders/senior management in your P&L figures. This will increase the P&L and therefore the multiple value of the business. You need to REPORT on the business without these costs but you CAN still take them; we suggest by dividend.
Have an emergency meeting re your sales processes and activity
Investigate the following
- Sales people’s performance
- Lead generation
- Conversion rates
Cut out ALL underperforming activities and undertake actions that bring quick results (don’t sign up to Yellow pages for another year- sack that salesman that has consistently promised but underperformed, don’t spend £10,000 on an exhibition stand that MIGHT bring more sales).
Invest more heavily in tactics that bring results and especially those that bring them quickly- such as Google Adwords etc. We are experts at establishing these initiatives (and plenty more besides) and more importantly, delivering them.
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We often work on a results only basis, regarding cost savings and sales improvement plans and would be happy to discuss these options with you.
Call us for more information or a confidential discussion 0800 999 6600 - weekdays 8.30-17.30, or feel free to call on weekends/evenings on 07793 802894 or email us info@sellmybusiness.biz
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