This is the question we are commonly asked, and we have held a series of seminars concerning the subject. Every business is unique. There is no magic formula which can be applied to every business, rendering it more valuable.
However, there are some features of businesses which, when sold, achieve a higher value than others. Most notable is that the business is not dependent upon its owner. Many businesses rely heavily on the owner for generating new business sales, technical expertise and management.
However, business values also increase where the business can demonstrate that it is in a growth phase. This would typically mean that it actively manages its product life cycles, and seeks to sell at a time when it has a growth through the life cycle rather than the decline.
Another factor we have found is important is the existence of a second tier of management. This of course persists in removing the dependency of a company from its owner.
The above are merely tastes of the areas that need to be considered in improving the value of a business. Since each business is unique, and each business owner is also unique, the best advice we can give you is to talk to us.
Our experts will be delighted to help you, and commonly we undertake a 3 to 5 year programme to prepare a business for sale. Call us on +44 (0)330 024 3200 to find out more.