Don't buy a valuation before considering how to best position your company for sale. You can act now to maximize the value of your business by downloading a worksheet identifying changes you can make before the valuation. Any one of the issues that you are able to resolve could get back hundreds or thousands of times your investment. Give yourself plenty of time before doing the valuation so that the results of your work are reflected in the financial statements.

As a financial analyst for a company that did more valuations than any other company in the U.S., I prepared over 80 valuations and I participated in many more during the sales process as an associate with another Southern California mergers and acquisitions company. In almost every valuation I worked on there were issues that prevented the owners from getting the best price for their companies. Once we brought these issues to their attention and explained how the issues would affect the valuation, the owners understood what needed to be done to fix the issues and get a better valuation.

At the time we prepared the valuation it was too late for many of the recommendations. The accountants had signed off on the financials, and the attorneys and other professionals had completed their due diligence. Of course an owner could start the process over after fixing the issues but that is expensive not only in terms of additional professional fees, but in the time it takes to make the changes. After 3 months, 6 months or even a year later much can change in the business environment. Competition could heat up, more regulations could be imposed, or increases in the costs of doing business could reduce profitability. These delays can cause an owner to miss the window of opportunity to sell the company for the best price. This worksheet helps you identify those opportunities to maximize value before you sell.