Anyone selling their business naturally wants as much as possible in return. Your company is your heart and soul, you have worked hard for it and you want to see that reflected in the sale. What the value is depends on many aspects. Sometimes you can increase the value of your business with small adjustments.

Do you already have an idea of the value of your business? Here' s an overview of the things you include in determining value. Some aspects are difficult to change, such as stock structure or historical growth projections. But there are also some aspects you can already address. This is how you polish your business for sale.

Don't dawdle with the annual figures

Although it is not mandatory for small businesses to disclose annual reports, it can still help you sell the business. Make a clear review of the most recent fiscal year and have the figures approved by an accountant. It gives the potential buyer confidence that things are in order.

Larger companies that do have an obligation to disclose annual figures would do well not to dawdle. Even if you have until the end of the year for it, it will do the value good if you can already present figures shortly after the fiscal year. A current overview of the financial status is essential to the valuation of your business.

Get your assignments and contracts in order

Does your company work a lot with licenses and contracts? If so, make sure you have the contracts in good order and you have accounted for them neatly. For example, many IT companies work on a license basis that are paid annually in advance. Things tend to go wrong on the balance sheet: the income is not distributed over the months and the part that has yet to be performed is not put away as a current liability.

It doesn't hurt to take a critical look at the reporting and possibly touch up if necessary. Correct and transparent accounting increases company value.

Evaluate your installment buying

Does your company own assets purchased on installments? Then sometimes it makes sense to pay the remaining amount in a lump sum. For example, do you have a 50 million machine that you paid off for 40 million? It is then worth paying off the remaining 10 million. The machine becomes your property, which in turn increases the value of the business.

Those who are not yet ready to pay off their debts would do well to make clear agreements with the leasing party. Have those agreements properly recorded: that way, when you sell, you can show under what conditions the buyer takes over the agreement.

Do vender due diligence

Do you want to sell the business very quickly? Then it can't hurt to do your own due diligence before a potential buyer is in the picture. Have a report drawn up mapping out exactly what is for sale. Where the buyer normally has the task of doing the due diligence, you now take that off your hands. It saves time, money and shows immediately that you are willing to disclose. That increases the value.

Increase value of your business by investing a little

So you increase the value of a business by gathering and recording information. Reports that show that you have things in neat order offer the buyer confidence. Also, don't be afraid to invest a little. After all, you don't sell a car with a crack in the window or by just running it through the car wash. Repair what you can and make your business look its best.  

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