Selling Your Business – How to Increase the Value of Your Business

Finally after what seemed like years overdue, NFIB published an excellent article about how best to prepare a business for sale, including lining up an investment banker among others in advance to help sell your business when the time comes.

Read the article and then get in touch with me if you have any questions.

What I like most about this article is how owners can increase the value of a business by adding BONUS valuation points incrementally. For instance:

Start with an Initial Valuation and add the following if you don’t already have:

1) Add 2% for creating an Owner’s Manual

2) Add 3% if the business has evolved beyond the owner’s reputation and daily activity

3) Add 4% for diverse revenue channels (more than one sector)

4) Add 6% for a diversified customer base (low levels of Customer Concentration)

5) Add 9% for a top-rated website

6) Add 10% for audited financial statements

In my years I have not seen such a breakdown of how to increase the value of your business incrementally but I agree in principle. I would caution that these figures are very subjective on a case by case basis. Still, as a national article this one helps me get the word out to middle market business owners.

Again, if you have any questions please call.


keywords: Mergers, acquisitions, selling my business, business broker, investment banker for my business