What is business value enhancement?
Business value enhancement refers to maximizing the value of your business to increase its overall worth. Selling your business is more complex than selling anything else. It requires a tremendous amount of planning and information gathering.
One of the major mistakes business owners make is failing to plan far enough in advance to ensure they’re maximizing the proceeds of the sale.
It’s not how much proceeds you get from the sale that matters most, but how much you get to keep. You can’t just decide to put your business on the market and expect to maximize your after-tax proceeds.
Value Enhancement Strategies
Minimizing your taxes is only one part of the equation. Perhaps even more important is maximizing the value of your business well in advance of the contemplated sale. You deserve to get full value for all the years of hard work you’ve put into your business, and we can help you do just that with our management consulting services.
Our value-enhancing strategies include:
- Address core business problems: identify and tackle operational inefficiencies that are holding back your business’s growth and profitability, such as outdated processed or operational bottlenecks. We can pinpoint areas in need of improvement, streamlining workflows, and enhancing efficiency.
- Generate higher revenues and profits: We can help you identify ways to increase revenues growth and decrease cost reduction. This may include expanding into new markets, diversifying service offerings, and reducing unnecessary expenses.
- Analyze critical business value drivers: understand the key drivers that influence the value and performance of your business. We will analyze aspects of your business to identify which factors have the most impact on your company’s value and how to strengthen those areas.
- Uncover the answers to key questions: We can help you answer critical questions about your business around future potential, competition, and areas of improvement. The insights gained can help inform strategic decisions to enhance business value.
- Review your corporate and tax structure: Ensure that you are setup to minimize taxes on the sale of your business, while ensuring your structure is attractive to potential buyers when you’re ready to sell.
Change your management practices so you can transform the culture of your business, which will take many of the burdens of business ownership off you. We’ll help you take your business to new heights. You get complete access to all our partners and their specific areas of expertise, so you always have the advice and services you need, when you need them.
Optimal Corporate Structure
One of the most important planning steps is making sure your corporate structure is set up to minimize the taxes you will have to pay upon sale. With an ineffective structure, you’re just leaving money on the table. There are various ways to reorganize your company and it takes a high level of tax expertise to set up the right corporate structure to meet your objectives.
Asset Sale Vs. Share Sale
When you’re selling your business, it’s important to ensure that the transaction is structured in a way that is fair to you and minimizes your taxes.
There are two types of sales: asset sales or share sales. Buyers generally prefer an asset sale because it minimizes their exposure to liabilities, but sellers generally prefer share sales to access their lifetime capital gains exemption, and also to avoid any future business obligations.
Looking to plan for the sale of your business?
If you’re planning to sell your business, it’s best to start planning several years in advance to maximize your revenues and profits, enhance business value, and maximize the cash you get to keep when the business is sold. Contact us for help in planning and enhancing the value of your business long-term.
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