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How To Boost Your Company Valuation

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How To Boost Your Company Valuation

If you are not in an immediate rush to sell your business, you will probably want to consider increasing the company valuation before you do so. After all, everyone wants to earn as much as they possibly can from the sale. Below, we reveal some top tips on how to boost the value of your business before selling.

  • Differentiate your products and services – For small businesses especially differentiation is a vital priority. You can command a premium if your services and products are different from others in the business-for-sale marketplace. However, you will need to show that your firm is uniquely positioned in order to achieve this. Develop and promote any unique features, for instance, intellectual property and patents.

  • Keep important employees on board – The last thing that any new business owner wants is employee turnover. Your key employees generate real income for the firm, and they bring stability to the business. You need to do all you can to ensure that your key employees are going to remain committed to the business once you have left.

  • Generate seamless routines and processes – The next thing you can do before you sell your business with business transfer agents is ensure that your processes and routines are seamless. This attracts buyers and boosts valuation, as it hints that integration will be easy and that the new owner will be able to continue to operate the company successfully once you are no longer there. You may even offer to stay on for a period of time so that the transition is a smooth one.

  • Boost profitability – Last but not least, all business brokers UK wide will tell you that the best way to increase your company valuation is to increase your profits. After all, buyers are going to be willing to spend more money on a company if they can see that they will be able to quickly generate a considerable amount of profit.

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Posted Jun 2016
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