Maximize the value of your company – Diepresse.com

Here are five recommendations for all SMEs, such as the company value, for example for successor or a sale:

1. Build strong management team
   A competent, independent management team ensures that the company successfully continues without the owner.
   Delegiate responsibility early to reduce dependencies on the owner.
   A motivated workforce with clear structures makes the company more valuable for investors.
2. Optimize customer and sales structure
   A diversified customer base reduces the risk for buyers (no too strong dependence on a few major customers).
   Long -term contracts and recurring sales (e.g. subscriptions, service contracts) increase the company value.
   Strong market position and differentiation from competition increase the attractiveness.
3. Attractive positioning and clear exit strategy
   Position your company as strong and innovative in an attractive market segment.
   Develop a clear exit strategy with potential groups of buyers (strategic buyers, financial investors, management Buy-in).
   Prepare professional sales material that convincingly presents the strengths and potential of the company.
4. Financial transparency and optimization
   Ensure clean and well documented financial accounting.
   Reduce unnecessary costs and improve margins to increase profitability.
   Prepare reliable financial forecasts that are plausible in future growth.
5. Stable and scalable business processes
   Standardize and document your processes to reduce the dependency on the owner.
   Implement efficient systems for sales, production and customer care.
   Automation and digitization can increase the attractiveness for buyers.

The most important thing shortly

The five most important measures to increase the value of your company before a sale or for a successor are: build strong management team, optimize customer and sales structure, attractive positioning and clear exit strategy, financial transparency and optimization, stable and scalable business processes. By implementing these measures early, the sales value can be significantly increased and the sales process or succession can be made significantly easier.

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Michael Hirt is a management expert and consultant, executive coach, keynote speaker and book author. Hirt helps executives for exceptional performance and results increase, with a high impact on the success of your company. He studied in Austria, the USA (Harvard LPSF) and France (INSEAD MBA) and works worldwide.