You’ve built your business from nothing to where it is today.
Now – after years of hard work and growth – you’re starting to think about your exit.
>> But there’s a problem.
Despite everything, your business isn’t worth what you think it should be.
What’s going on?
Why is there a gap between what you think your business is worth and what the market says it’s worth?
The issue is something I call the Value Gap. This is the gap between current and potential value.
As a business owner, it’s easy to overestimate what your business is worth today. You’re emotionally invested. You see its future potential.
But the market sees it differently.
And if you want to maximise your valuation and get the optimal exit price, you need to close that Value Gap.
Here are three (of several) strategies to help you do just that:
🟦 Focus on Standardising and Documenting Key Processes
Buyers want assurances that the business can run without you. They don’t want to rely on knowledge locked away in your head. By standardising and documenting your key processes, you demonstrate the business can operate effectively when you leave.
🟦 Strengthen Your Management Team
Having a strong management team in place, shows buyers the business can thrive without you. Invest time upskilling your team, especially in areas where you currently play an irreplaceable role.
🟦 Clean Up Your Financials
Fix and upgrade your financial records and make sure you have all the right accounting processes and controls in place. When buyers want to see your numbers, you want no nasty surprises and no long delays.
Closing the Value Gap is all about making your business more attractive to potential buyers right now. Do this effectively and you’ll be rewarded with a higher valuation and a more successful exit.
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