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Five changes that can increase value before a sale

None of these need capital. All of them change how a buyer sees the risk in your business.

Value · 3 min read

One: put the repeat work under contract

Turn the customers who come back every year into customers who are committed to coming back. Contracted revenue is the cheapest valuation uplift available.

Two: make yourself replaceable

Name a deputy, hand over the pricing decisions, introduce a second contact to your biggest accounts, and take a proper holiday to prove it works.

Three: tidy the paperwork

Signed contracts, current leases, written employment terms, clear ownership of vehicles, software and intellectual property. Dull work, immediate effect on diligence.

Four: clean up the profit picture

Take personal costs out of the business a year ahead so the accounts show real trading performance rather than a list of add-backs a buyer has to take on trust.

Five: reduce concentration

Win two or three accounts in the size bracket below your largest. Spreading revenue is slower than the other four, but it lifts the multiple more than any of them.

Practical guidance from a buyer's perspective, not financial, tax or legal advice. Every business is different — speak to a qualified accountant and solicitor before making decisions.

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