Three short-term actions to boost business valuation before a sale
Business owners and management teams often ask us: “What can we do in the short term to boost our valuation ahead of a sale?” Naturally, the answer depends on the size, maturity, sector, and specifics of your business - but there are three practical, high-impact levers we frequently recommend. These are actions that don’t require a full transformation but can significantly shift buyer perception and value.
1. Increase visibility on forward revenues
Buyers don’t just pay for the past - they pay for confidence in the future. Demonstrating a clear and credible revenue outlook can materially lift valuation expectations.
This doesn’t always require signed contracts. A well-qualified pipeline, evidence of recurring income, or strong re-order patterns can all work in your favour. The key is demonstrating forecasting accuracy - buyers will scrutinise it.
With our clients, we often build a robust, data-driven view of future revenues. This includes scenario analysis and using specialist tools to back up the numbers with confidence and clarity.
2. Reduce reliance on the founder
If everything runs through the founder, it raises a red flag. Buyers want to know that the business can operate - and thrive - without the founder at the centre of every decision.
Simple steps like documenting key processes, delegating client relationships, and creating a functioning management team or board structure can go a long way. The goal is to shift the business from being “owner-led” to “investable,” and most importantly, sustainable.
This can be the most challenging of the three areas - especially if the founder is deeply embedded in day-to-day operations. It may require longer lead time and external support to plug management gaps or restructure leadership dynamics effectively.
3. Optimise your working capital cycle
No buyer wants to fund slow-paying debtors, inherit stretched creditors, or take a gamble on unresolved WIP. Cleaning up your working capital cycle now will benefit both short-term cash flow and final valuation.
Accelerating collections, tightening invoicing discipline, or renegotiating payment terms can make a material difference. This isn’t always difficult, but it does take focused execution and enough time for the changes to take effect.
In one recent case, we provided corporate finance services to a client facing a particularly bloated working capital cycle. With a few months of preparation, we helped demonstrate improvements that directly supported a higher negotiated equity value.
Small changes, big results
You don’t need to overhaul the business to improve your sale outcome. But tightening up these three areas can significantly improve buyer confidence - and, by extension, what they’re willing to pay.
We’re here to help
Our specialist Corporate Finance team is happy to sense-check your plans if you’re considering an exit in the next 12–24 months. From early-stage advice to full end-to-end transaction support, we’re here to ensure you achieve maximum value and a smooth process.
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