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Valuation

How to Maximize Your Business Valuation Before a Sale

October 15, 2024 · 8 min read

Valuation is built, not negotiated. Owners who lift their multiple by a full turn typically did the work 18–24 months before going to market.

Five moves do most of the heavy lifting: clean up the books and migrate to accrual; reduce customer concentration so no account is over 15% of revenue; document processes so the business survives a 90-day owner transition; build a second tier of management; and lock down recurring revenue contracts wherever possible.

None of these are glamorous. All of them compound directly into purchase price.