The Secret on How to Get the Very Best Price for Your Business

Thumbs, Up

Plan then invest in strategies and professional advice to maximise your business’ goodwill.

Why? There are 2 compelling reasons:

  1. What you spend on increasing the Goodwill value of your business is 100% tax deductible.
  2. What you get paid for your Goodwill when you sell your business is 100% tax free.

Is this not the best Win-Win in business? Tax-deductible expenses and tax-free capital gain!

How do you increase the value of your Goodwill?

Today I’ll give you ‘The What’. These are 9 key areas of significant value to make a business more desirable and hence more valuable. (‘The How’ are trade secrets that we have built up over many years and I’m not about to give them all away here.)

  1. A professional operations manual. Think of the standard a franchise business would need.
  2. A database of every client or customer you have ever had.
  3. Monthly financial projections. Project at least 12 months but see if you can project 24-36 months into the future. Make sure you include rock solid assumptions.
  4. Historical financial data. Have your KPIs presented in an easy to read and understand format.
  5. A business plan. This supports your financial projections.
  6. Product and/or a services inventory. Cover everything you sell.
  7. Comprehensive information covering all your IP; how and why it is unique to your business.
  8. Stunning website. Make it better than your competitors.
  9. Continual social media exposure, if appropriate.

Few businesses I see for sale or where the owner is thinking of going to market can tick off all 9 boxes.

To tick all 9 boxes costs money and takes time. If you want to sell in 12 months’ time, you’d better start now. If you want to sell in 6 months’ time, you’ll need to scramble immediately.

For most businesses this is a 24 month programme.

The 9 key areas are ‘The What’. If you want to know ‘The How’, contact me, Jamie Tulloch, I’d love to help you out!