Yes! Selling value is derived from a combination of two values, real and intrinsic. Although market forces generally dictate the intrinsic value, there are a number of different ways that owner(s) can increase the real value component of their business.
- Focus on maximizing assets and decreasing liabilities, whether real or potential. A few examples of these include addressing the collection of overdue accounts; reduction of surplus inventory; disposing of obsolete inventory and equipment; tighten the reins on unnecessary or non-business related expenses; and encouraging holidays to reduce vacation pay liability. These issues are much simpler to handle before entering into a stressful selling environment.
- Choose a professional to prepare a brief corporate profile which describes your business, accumulates financial information, identifies strengths and weaknesses and addresses comprehensive tax planning opportunities. Use the same professional to ultimately negotiate or review your transaction, as he or she now understands your business.
- Finally, create a forum for communication to other owners that allows everyone to be part of the process right from the very beginning.
Norman Seawright, CA
Norman Seawright, CA is President of NewCap Financial inc., specializing in providing strategic consulting services related to the buying and selling of businesses, corporate finance and corporate and estate mediation services, (905) 474 5617#263 or email: norm@newcap.net.
