Sell Your Business 7 Steps to Higher Company Value

Thinking About Selling Your Company Next Year?    Prepare Now!
7 Steps to Higher Company Value:
  1. Don’t Push Income Out to Next Year on Your P&L
  2. Do Not Prepay Expenses
  3. Have Year End Books Completed by January 15th
  4. Do Not Buy Inventory until January 1st
  5. Do Not Buy Equipment until January 1st
  6. If Cash Accounting Make All Deposits Before Year End
  7. If Accrual Accounting, Invoice All You Can
While these steps in reverse are typically done to minimize taxes, use these same strategies to increase the net income and thus value of your company. Most Banks, Buyers and Brokers value companies on a weighted formula. The heaviest weighted year is the most recent year end. By implementing these strategies you can increase your net income on paper, thus a multiple applied to increase the selling price. Always, always, consult your accountant and broker. Develop a plan and time frame. You might even be able to file taxes after the sale, mitigating your tax burden further.
If you are thinking of selling your company I would love to be of service. I have been selling companies across the US and accomplishing my clients goals, for over 25 years. Call me personally to discuss your goals. My personal number is 704-999-9728.
Frank R. Davidson MBA,MEA,CMI,SBA
Principal & Senior Business Analyst
Certified Medical Intermediary
Davidson Business Investments
http://www.GoDBI.com
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2 thoughts on “Sell Your Business 7 Steps to Higher Company Value

  1. Thanks for sharing such a helpful information as I have been looking for something like this.

    Recently I found a free business listing website – http://www.addbizglobal.com though it might help other to showcase their business. I am getting enough of visits since I have added my business there.

    Good luck and keep sharing 🙂

    Like

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