How do you increase the value of your SME before the sale?

You have a thriving business. The numbers are healthy, your customers are happy. But as soon as you think of a possible sale, another question comes up: how much is it actually worth?

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And most importantly: what can I do to increase that value before selling?

Many entrepreneurs think that the value of their company is mainly determined by numbers. But buyers look beyond profit and turnover alone. They assess risks, growth potential, dependency and structure.

In this blog, you'll learn how to increase the value of your company using five components that really matter to buyers. With practical examples and concrete steps that you can already take today.

Why increasing value is important

The valueing your company is a snapshot. But the value that a buyer assigns to it is mainly based on confidence in the future.

Sales value is not the same as selling price. The value is what someone should pay. The price is what someone ultimately wants to pay. When your buyer sees risks, his willingness to pay decreases. When he sees opportunities, they actually increase.

That's why you can actively focus on the value of your company. Especially when you know what buyers pay attention to.

The five pillars that increase the value of your company

1. Continuity: recurring turnover and repeatable customers

Buyers love security. The more predictable your turnover, the more attractive your company.

Examples of continuity:

• Subscription models or service contracts
• Annual maintenance contracts
• Customers who have been coming back for years

What can you do:

• Offer a maintenance or extension contract to existing customers
• Focus your sales process on repeatable orders
• Show what the customer churn is per year (churn)

Impact: companies with a stable, predictable turnover often receive a higher multiple when valued.

2. Transferability: can the company live without you?

Many SMEs revolve around the entrepreneur. Customers call you, employees ask you, suppliers trust you. For a buyer, that is a risk.

What can you do:

• Make sure customers and suppliers have relationships with your team
• Document processes so that a successor can get to work with them
• Make yourself redundant in daily work

Case study: an entrepreneur in the IT sector extracted himself from all customer contacts and appointed an operational manager. Within 18 months, the sales value doubled due to increased portability.

3. Scalability: Can you grow without huge costs?

Buyers are not just looking at what the company does now, but what it can become. Scalability means: growing without your costs growing at the same rate.

What can you do:

• Digitize manual processes
• Automate customer acquisition and billing
• Provide modular services

Example: a marketing agency developed its own software tool that customers could use themselves. The additional turnover required hardly any additional staff and increased the value considerably.

4. Systems and processes: is there a structure?

A company that runs on clear processes exudes peace and control. It reduces the dependency on casual employees and makes the operation more predictable.

What can you do:

• Describe processes: sales, onboarding, support, billing
• Use tools like Notion or Google Drive for centralized knowledge
• Automate your accounting and reporting

Result: buyers have more confidence in continuity and are willing to pay a higher price.

5. Financial peace and transparency

A buyer doesn't want surprises in the books. Clean figures, clear reports and normal corrections (such as market-based management fees) provide confidence.

What can you do:

• Ensure timely, well-organized financial statements
• Avoid creative bookkeeping or personal expenses via the business
• Normalize profits for, for example, management remuneration or one-off costs

Example: an entrepreneur who paid a low management fee for years corrected this in advance in the figures. This brought the EBITDA into a realistic picture, which made the negotiations more flexible.

Common mistakes when increasing value

• Keep doing everything yourself until the last day
• Do not have clear reports or KPIs
• Let the company run private expenses
• Only look at profits and not transferability
• Don't take the time to optimize before sales

Increasing the value requires preparation. This does not have to be complicated, but it does have to be targeted.

What can you do now?

Want to know how ready to sell your company is? Or where you can increase the value with relatively simple steps?

At BestBonobos, we are working on a platform that gives you exactly this insight. You fill in your numbers and company characteristics yourself, and we'll show you:

• How ready to sell your company is
• Which parts pose a risk for buyers
• Where you can optimize for higher value
• What your indicative value is now (via EBITDA multiple and DCF)

Conclusion

The value of your company is no coincidence. You can actively influence them if you know what buyers pay attention to.

By making your company less dependent on yourself, structuring processes, stabilizing sales and putting your numbers in order, you are taking the first step towards successful sales. And a better price.

We will launch the BestBonobos beta soon.
Do you want to be one of the first to test how ready for sale your company is for free and without obligation? Then sign up below. Be the first to access the platform and get immediate insight into the value of your company. Feel free to sign up using the form at the bottom of this page!

👉 Sign up for the BestBonobos beta today and discover how our platform helps you with valuation, preparation and sales strategy.

📩 Sign up for a beta? Fill out the form at the bottom of this page

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