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Updated by Kari Baervahr on Jun 19, 2018
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3 Ways to Maximize Business Value

Increase the value of your business and make it attractive to potential buyers if you plan to sell it in the future. Learn the 3 best ways to maximize its value. Check this list on Sell Business - 3 Grips That Maximize Value.

1

Show the future potential of the business

Show the future potential of the business

The buyer always buys for the future. The absolute most important job is to bring the "right" buyers to the negotiating table. The essence of your advisor's job is to identify and explain potential buyers why they should buy the business. The bids will often vary by several hundred percent. The reason for this is: Buyer's chances of harvesting potential are widely different! See the company from the buyer's perspective, identify synergies and think globally. Below are some examples of how to identify the right buyer.

2

A smart exit process

A smart exit process

A good sales process is value creation in itself.
It creates competition for the business at the same time. Result: You can choose from alternative solutions. Below are some tips on how to proceed:

3

Reduce buyer’s risk

Buyers usually have more options when acquisitions are considered. Potential and associated risk are two key aspects in the buyer's assessment. An uncertain potential buyer will often seek other alternatives. It is therefore important to reduce the buyer's perception of risk. Different buyers have different perceptions of risk. By halving the buyer's return requirement, you double the company's value. Risk of an event = The probability of the event * Consequences of this event. It is important to be open and honest, also about weaknesses.