How to Maximise the Price Paid for your Business

Maintaining honest, accurate and up to date financial records are the most important single item that will truly reflect the value of your business. Minimising tax liability by adjusting records or hiding income to reduce profits (and therefore tax paid) can come back to haunt you when its time to sell your business.

 

Most prudent buyers, accountants and financial institutions will want to see a full set of financial accounts up to three years depending on how long the business has been operating. Not only will they be analysing the profit line of the accounts they will also be looking at trends in trading up or down etc, sudden increases in income in the previous year to sale, decreases in costs. So it is important to show all income to maximise the sale price of your business especially in self storage with a multiple of 10 in most managed complexes $1,000 per week off your trading accounts can have a significant impact on the sale price of your business.

 

Clean up any "off the records" income to put it back in the books as part of your long range planning for at least a year prior to offering the business for sale to reflect the true cash flow of the business.

 

Please contact our office for a copy of a fuller, more descriptive version of this document on disc.