How to make sure I sell it for a good value

When you are opening the business you want to create, you have to think from the beginning what you want to do with it: do you want to sell it after a certain number of years, do you want to keep it, to move it further into the family? Depending on these two things you need to know how to grow your business.

If you want to sell it in the future, a business must be created from the beginning on healthy principles, because when you sell, you will be audited by another company - and depending on what they find, how you organised the company, what you registered in the accounting, you will get a lower or a higher price.

During my activity I met many investors who did not buy the respective companies due to the problems they had: for example many protocol or personal expenses registered in the company, personal expenses, unpaid suppliers, invoicing between companies. For them this is a danger, because any inspection that may come after 5 or 10 years can detect these irregularities - and the one that pays is the company, not the administrator or the associations. This means that any company, at any time, can be closed by the tax imposition decisions it receives.

Any investor who comes to buy your company mainly analyses one line from the annual financial statements - namely the equity. This represents the added value that the company created during its existence. The nominal value of an action is the value with which you contribute to the formation of the company. The carrying amount of a share or social share represents the additional value that you have brought to the company's activity.

So if you are an investor who wants to grow his company, grow it and take it to a certain level, and sell it afterwards, it is good not to withdraw your dividends. Otherwise you will only get the nominal value of the shares, plus a small amount. In these conditions, the company can be bought only by someone who has a specific need, for example for the VAT code - and to maintain it for a short period.

As a conclusion, always increase your social capital from the profit you make because this gives your company life, so you give it more value - or you do not distribute your profit every year on dividends, but leave a part in the company, because that is the amount that you can increase for sale. It is true that an added value of your company is represented by the goodwill, meaning what you have created, the brand on the market, which for sale you will have to re-evaluate with a specialised report.

So, be persistent, create, and you will get everything you want when you are in a position to sell your company.