Your business is most valuable when it’s organised and runs like a well-oiled machine. This means making sure you have financial systems in place, that your paperwork is up to date, that you have the necessary licences and permits to operate and that your business policies are clear and concise. Review all contracts and make necessary amendments. Having solid management in place adds great value as it ensures business continuity for the seller and it dramatically reduces the risk in the business.

If you want to optimise your business for sale or exit, it’s important to make sure your processes are as efficient and effective as possible. This means streamlining any processes that take too long, automating processes whenever possible and making sure all employees understand their roles and responsibilities.

The actual sale or exit value of your business is directly related to its profitability. Most valuations are based on free cash flow, which is generated by the assets (equipment, staff, contracts) of the business. The value of these assets is captured in the value of the cash flow. This is especially important if the business has dormant assets such as mothballed equipment. These may be valued separately or sold separately as long as they do not affect the running of the business. Therefore, it’s important to get your costs under control and focus on increasing your profits. This may mean cutting out unnecessary expenses and looking for new revenue opportunities. This is especially relevant to those seeking to retire or emigrate as prospective purchasers are often interested in how they may grow the business. Sound advice based on the experience of the owner may offer encouragement and opportunity.

Diversification is key to long-term success, and it’s just as important when you’re looking to optimise your business for sale or exit. Consider investing in different products and services or different markets and geographic areas to ensure you’re not putting all your eggs in one basket