Selling Your Business
If you plan to sell your business in the foreseeable future, begin preparing for a business appraisal as soon as possible. (Ideally, three years before the sale.) Suggestions to increase the appraised value:
- Cut costs - Instead of aiming to reduce your taxes, focus on maximizing profits. Trim unnecessary costs like expensive leased cars, travel with only a partial business purpose, costly entertainment, business memberships, etc. Reduce nonessential employees, even family members.
- Clean up your books - Write off excess inventory or fixed assets that are no longer used.
- Once you are shopping the business, offer to remain onboard for a few years after the sale to maintain relationships with key customers. When you decide to market the business, the appraisal can be updated.