photo by www.hawkinsphotography.printroom.com

A Third key is to get rid of outdated inventory-sell off any extra assests such as unused or outmoded equipment. The proceeds can be used in the business. If there are any assets that should not be included in the value of the company, such as personal vehicles or real estate, you might want to separate them from the assets of the company. This is especially important if you are considering placing the company on the market. A prospective purchaser expects everything they see to be included in the sale. If a portrait of your grandfather is your personal property, delete it from any list of company furniture, fixtures, and equipment; and if the business is for sale, remove it entirely.

Another important key is to resolve any pending items. For example, if the company has a trademark on any of the important products, and the paperwork for registration is sitting on someone's desk, now is the time to complete the filing. Trademarks, patents, copyrights, etc., can be very valuable, but only if they have been properly recorded and/or filed.

Contracts, agreements, leases, franchises agreements, and the like should reviewed. If they need to be extended, take the appropriate action. A contract with a customer has value and if it is scheduled to expire soon, why not get it renewed now? The same is true for leases. Favorable leases for a long period of time can be a valuable asset. Do your key employees have employee agreements?

The key factors outlined above not only build value, but they also increase the bottom line. If you are considering selling your company at some point, these key issues will come back many-fold in the selling price. A professional business intermediary can help with other factors that can influence the value of the business.

One other hidden benefit of building the value of your company is that you have never known when the Fortune 500 Company will come "knocking at your door" with an offer that you can't refuse. At that point, it's probably too late to work on some of the issues mentioned above.

We do Business Search, Valuations, Mergers and Acquisitions, Exit Strategies, Business Consulting, Estate Services and Franchise Sales.


If you need more information or help please contact me at 863-667-2627 and I will schedule you a meeting with one of our agents. We charge no upfront fees to qualified business owners to sell a business.
This information taken from Murphy Business Brochure "The Privately Held Company".