Business Valuation Management – Episode #83

by Richard Wilson on July 31, 2011

The following video is borrowed from our platform and was originally recorded for our business management training program.   Positioning your business for a high valuation is really valuable for business managers and CEOs.  At some point, you might probably want to sell off either a portion of your business or the entire business and getting a high valuation is clearly important for selling your business or raising capital for your business.

Video Transcript/Summary: The strategies and tips provided within this video module include:

  1. The first tip is to document everything in your business so that you are constantly following a recipe.  This will allow someone else to run your business without missing a step.
  2. Be wary not to give away too much information that might leave you vulnerable to your competitors copying your strategies and processes. 
  3. Be as transparent as possible in your accounting, taxes, revenue, specific costs and profits. 
  4. Another tip is to make sure that you understand the different types of revenue and how an investor or buyer will view these types of revenue.
  5. Another important aspect is brand promise: people want a well-positioned brand and it may boost the multiple that prospective buyers offer for your business.
  6. Make sure that you include any patents, trademarks and proprietary processes. 
  7. Be aware of what type of buyer you are appealing to and how you can make the process easier and more attractive to that person.
  8. Make sure that agreements and partnerships that you have in place will be secure throughout and beyond the selling process. 
  9. Invest in a financial audit to show that you are serious about selling your business.

I hope that these tips on how to position your business for a valuation help get you a higher multiple and improve your business.

Thanks for joining us, and I will see you again soon,

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