Key Strategies to Maximize Value Before Selling

Most business owners I meet have spent years driving revenue, growing their companies, and building something that matters. Yet, when the time comes to sell, far too many focus only on the sale price, not on the real strategies that can maximize both what they earn—and what they keep.

Business Value Isn’t Just Revenue

It’s easy to assume that topline growth is what will attract buyers and boost your outcome. But, in my experience, the biggest levers for enhancing value are found elsewhere—often below the revenue line. Are you running as efficiently as possible? Can you show that your business matches up against industry benchmarks or “best in class” peers? Have you invested in the foundational elements—data, process, and the right people in the right seats—that make your company resilient and scalable?

One of the most overlooked areas is what we call “intangible capital”—the aspects of a business that don’t show up directly on a balance sheet, but can dramatically affect value. Think: dependency on the owner, lack of middle management, concentration in a handful of customers, or the strength of your reputation and client relationships. Each of these can either enhance or limit what a buyer is willing to pay.

Tailoring Strategy to the Buyer and Exit Type

Not all exits are created equal. The kind of buyer you target—or the structure of the deal—will often dictate where your attention should go. A sale to employees through an ESOP, a management buyout, or a third-party private equity transaction each values different strengths and exposes different weaknesses. The key is knowing which factors are most important for your chosen exit and prioritizing improvements accordingly. When you do, you’re more likely to keep that value in your pocket rather than pass it on to the next owner.

Financial Strategies: The Real Game-Changer

Capturing value isn’t just about running a tight business; it’s about understanding and employing the right financial strategies well in advance of a sale. This is where things can get complicated. Many of the best tactics—installment sales, various trusts, family-limited partnerships, opportunity zones, and more—require precise planning, often years before the transaction. These are not “one-size-fits-all” solutions. Each comes with nuances and tradeoffs, and the benefits can evaporate if they’re not implemented correctly.

A simple example: An installment sale lets you defer taxes by spreading your gain over multiple years. Charitable trusts can reduce your current tax bill while supporting causes you care about. Other tools, like donor-advised funds, private foundations, and even life insurance trusts, can make a difference in what you keep—and how your wealth is used for generations to come.

But here’s the catch: nearly all these strategies have deadlines, look-back periods, and unique limitations. They work best when they’re part of an integrated plan—not last-minute afterthoughts.

Closing Thought

I often tell owners that selling a business is not like selling a house. There are hidden factors, complex strategies, and intangible value that require careful stewardship. With the right focus and planning, you can turn years of hard work into lasting wealth for yourself and your family.

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