The decision to sell a business is complex and requires careful consideration; a key question for business owners is how to maximize value in a sale. The answer is multifaceted, as many factors drive value, such as size, profitability, growth potential, market conditions, and industry dynamics, to name a few – but ultimately, there are no “silver bullets” or shortcuts. The situation demands you look at the financial, technical, and personal sides of the business.
The best way to maximize value in a sale is to take a long-term approach to building value in the business well before taking steps toward selling. This strategy is rooted in basic business-building initiatives:
- Implementing structure
- Investing in the team
- Planning for the future
- Understanding the key value drivers
- Engaging with advisors