The key element in selling your business for maximum value is ensuring you own a business and
not just a job.
The biggest deal breaker when you want to sell your business is how involved/important the
owner is to the successful operation and profitability of that business. If the owner is key, the
business will be tougher to sell. If the owner is key and the skill set is very unique or rare, the
business may never sell.
So what can you do to maximize the sellability of your business and hence its value? Start with
these key items:
– Take a holiday! Plan what you need to do to keep your business running while you are
gone. Whatever you need to do to take a 3-week holiday will give you insight into what
needs to be done to take a “permanent holiday”
– Set up systems to run your business. Document all processes.
– Tidy up ownership. If your share structure is a mess, tidy it up. If you have minority
shareholders, get them on board or buy them out.
– Document legal matters. If you have a "handshake" agreement with any of your
suppliers/landlord/customers, try to get something in writing.
– Stop cheating the tax-man! Every dollar you save in taxes will cost you $15-20 in sale
price (based on a 20% tax rate and a 2.5-3x multiplier).
Need more information? Call us at 204-478-7266, ext. 110. or click
https://www.bealbusinessbrokers.ca/selling-your-business/ to download our free e-book on
selling a business.