Practice Good Business Practices

When investors and buyers look at your business they will ask for forward looking financial statements.  The future profitability and growth prospects of your business have a direct impact on its value.

If you have a historically proven process for creating forecasts and a method for achieving them you can more appropriately justify your projections. This will hold more weight in the eyes of the buyer.

If you don’t have a forecasting and planning process in place the buyer will create his own based on his knowledge of your industry and his fears related to his lack of knowledge of your business.  This will most certainly be more conservative than your projection and, as a result, will negatively impact value.