Tips for Maximizing Value

Some businesses have thrived over a period of time with just a few major customers or even a single customer. And oftentimes, the owner has a strong relationship with those companies. So, what will happen when the business sells? Will those relationships remain in the future? How will it impact the revenues and profitability of the company if any of those customers walk away? In their exit planning process, business owners must find a way to diversify their customer base so buyers are comfortable with the future of the business. If not, the seller must be prepared for a lower price or be willing to accept a flexible method of payment based on future revenues and/or profits.