Business value depends on intangible assets like succession plans and employee retention, not just balance sheet numbers. Owners who build systems a new owner can run independently can justify higher sale multiples when they exit.
And the thing to remember is that value is subjective. It's not necessarily what you think your business is worth. It's not even the value of the tangible assets on your balance sheet. It's really about a lot of other things like intangible assets. You know, you hit on buy-sell agreements, having a succession plan in place. You know, it's about a lot of other things like that where, you know, another example would be employee retention, things where you can get creative to continuously serve your customers and build value for your customers. And make sure that's transferable value, that way somebody else can come in and be able to run your business in a similar fashion that would justify paying those, those higher multiples that you want to get when you sell your business.
How Can You Maximize Your Business Value Before Selling? with Randy Katz Video
