Maximising the Value of Your Business Before You Sell

The best time to start preparing a business for sale is one to two years before you actually list it. The changes that lift value most are rarely quick fixes - they are improvements that a buyer can see have been sustained over time.

Grow and protect your profit

Because most businesses are valued on a multiple of profit, every extra pound of sustainable profit is multiplied at sale. Focus on margin, not just revenue: review pricing, cut waste, and drop unprofitable lines. Avoid the temptation to suppress profit to reduce tax in the years before a sale - low profit means a low valuation.

Reduce dependence on you

A business that cannot operate without the owner is harder to sell and worth less. Document your processes, build a management layer, and step back from day-to-day operations so a buyer can picture themselves - or a manager - running it.

Lock in recurring revenue

Contracts, retainers, subscriptions and repeat customers all make future earnings more predictable, and predictability commands a higher multiple. Where you can, convert one-off customers into ongoing relationships before you go to market.

Tidy the financials

• Keep clean, up-to-date management accounts
• Separate personal and business spending
• Resolve any outstanding disputes, bad debts or legal issues
• Make sure leases, licences and key contracts are in order and assignable

Fix the obvious

First impressions count. A tidy premises, a current website, good online reviews and clear branding all reassure a buyer that the business is well run. These are inexpensive and they remove friction from the sale.

Not sure where the value is in your business today? Get an instant valuation to set a baseline, then plan the improvements that will move the number most.