It is important to give the buyer of your company as much certainty as possible about how the company will perform after the transfer. Because the higher the estimated risk of your company, the lower the buyer will value your company. In order to make a good first impression and give the buyer as much comfort as possible about the state of your company, you must ensure that:
• administration and financial reporting are in order
• all contracts, agreements and australia phone number library arrangements are properly recorded
• the company is as independent of you as possible
• the turnover is easily predictable (subscriptions, contracts, etc.)
• the company is not dependent on 1 or 2 large customers and suppliers
In addition, you can significantly increase the value of your company in the run-up to the sale (the last financial year). You do this by taking the following measures that influence your profit and free cash flows:
Save costs
The fastest way to increase your profit is to spend less money: cutting costs. Look carefully at the contribution of all (fixed) costs, such as software, rent or hiring freelancers. And be critical of upcoming investments.
Increase sales
Examine your customer base: how can you generate more revenue from existing customers ? A big opportunity is to convert project-based customers to a fixed subscription or contract. This way you create recurring revenue, which significantly increases the predictability of your marketing agency. Or can you sell additional products or services to current customers? Or reactivate inactive customers?
