If you are looking to sell your business in the future, there are a number of issues that you should address in advance, in order to give yourself maximum chance of success. Factors such as a glut of businesses on the market which can drive down valuations and a lack of differentiation between competitor companies makes selling your business more uncertain than ever and gives more weight to the importance of planning in advance. Taking the time to have your business valued to determine the value of your client book can be a big determining factor in how attractive your business is in the market, as it is an indication of its brand, reputation and therefore potential future success in the hands of the buyer. Take steps to crystallize this value in your early planning stages to improve your company’s appeal if you come to sell it.
Of course, having your business valued provides a number of other benefits to you, such as potentially helping you to obtain higher value credit, putting equity compensation strategies in place and reducing the likelihood of disputes between partners.