8 Value Enhancers for Your Business
TIP: Having a management team in place that can keep your company operating when you sell is one of the most important things you can do to sell your company for top dollar. —Patrick Grabill, Coldwell Banker King Thompson, Columbus, Ohio
Tom Wright, a commercial business broker and president of Century 21 T. L. Wright Realty in Cobleskill, N.Y., recommends these steps to increase the value of your business:
- Cut the fat. Eliminate unprofitable or nonessential services.
- Renegotiate or cancel problem contracts and leases.
- Upgrade automation systems and office equipment.
- Evaluate salespeople and office staff; terminate marginal and nonproductive people.
- Clean up your financial statements. Remove owner perks and nonessential expenditures. Improve your bottom line to reflect maximum profits.
- Make sure a solid management team is in place who are willing to stay with the business, advises Beatrice Mitchell of investment banker Sperry, Mitchell & Company, New York City.
- Refinance any debt at more favorable rates, if possible.
- Reappraise assets (especially your office building, if you own it) that may have appreciated in value.
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