No 2 Knowledge
upgrade.. Equipment or Appearance to help
sell the business ?
Don't spend a cent !
|We at Business Interests are often
asked if various improvements will help the
In most cases it has to be don’t
cent! you probably will not increase the value
of the business dramatically, as the main factor
determining price is profit.
In fact it sometimes helps the sale when we can
point out that there may be improvements the
purchaser can make to enhance the business!
It usually takes some time for any improvements
made to be reflected in the bottom line.... my
advice generally is if you intend to sell within
a year you probably will not reap the full
benefit of the
improvements made and possibly
not recover the costs.
Over capitalization is a common problem with all
types of business, much like spending a fortune
on home improvements in an area, which will not
recoup the money spent when sold.
Businesses should only have money spent where
there is a realistic expectation of an increase
in profit in proportion with the amount of money
and time to be spent.
improvements for the new owner...
they may have
different thoughts on what is needed