When you make the decision to sell your business, undertaking a fresh growth strategy might not be the first thing that springs to mind. However, there are a number of reasons why you should aim to grow your company prior to a sale.
Of course, the most obvious reason is that larger companies with higher turnover and earnings command higher multiples than smaller businesses, meaning a more significant payday for you once a deal is completed. But that’s not the only reason.
As a business grows from, say, six-figure turnover to seven or eight-figures, it becomes easier to ultimately transfer control to a new owner. That might sound illogical, but there is solid evidence that growing a business can make the process of disposing of it far simpler, quicker and more cost-effective.
When a business is bigger, there are likely to be more solid, well-established processes in place, which makes it easier to transfer during a sale, compared to the more haphazard systems that are often in place at smaller, less well-developed companies.
As a result, in order to unlock a higher sale multiple when it comes time to sell your business and to help ensure that it has efficient, set processes in place and is ready for a rapid, successful transition of ownership, here are some steps that you can take to scale your firm to a seven or eight-figure business.
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