If you’re considering an exit in the next few years, early preparation can make a huge difference. Companies that plan ahead add hundreds of thousands to their exit value.
Here are some key areas to focus on:
👤 Reducing Owner Dependence
This makes your business more attractive and valuable to potential buyers. You need to create a sales engines backed by marketing data. This will boost your business valuation.
💹 Stable, Growing Revenue
Attracts investors and showcases the growth potential. Also, your business must be profitable at least two years before you exit. Investors don't like businesses that don't generate profits. If you do not generate profits then you at least need to have a CRAZY growth rate if you want to sell at the best possible price.
💵 Good Margins
Essential for demonstrating profitability and operational efficiency. Every industry will have some benchmarks and you need to make sure you meet those benchmarks. For example in software industry when you sell the business you need to have a gross profit margin of at least 70%.
💻 Organised Digital Data
Simplifies due diligence and enhances appeal to buyers.
Adding to these, consider the following for even greater appeal:
Focusing on these areas not only prepares your business for a successful acquisition but also strengthens its core, making it more robust and competitive in the marketplace.
Investors love predictable income. That is why you need to make sure you have your marketing data in order. That will help you and investors understand the return on investment (ROI) of your marketing activities and how efficient they are.
