Boost Business Value before you exit

How to Boost Your Business Value Before You Exit

Succession planning tips for business owners who want a profitable future

Australia is on the verge of the biggest intergenerational transfer of business wealth in its history. As thousands of Baby Boomer business owners prepare for retirement over the next decade, a wave of businesses will hit the market, creating both opportunity and risk.

But here’s the catch: more businesses for sale doesn’t mean more buyers. In fact, it’s quite the opposite.

Unless your business is in top shape, there’s a very real chance it will struggle to sell or, worse, not sell at all! That’s why now is the time to take a serious look at how your business is positioned and what will drive its appeal to future buyers or successors.

Why Succession Planning Can’t Wait

At Collins Hume, we work closely with business owners to help them prepare for sale or succession, and one truth stands out: businesses that plan ahead get better results.

With more businesses on the market, buyers will gravitate toward high-performing, low-risk opportunities. Those without strong fundamentals may be left behind.

Here’s how to make sure you’re not in that boat.

Four Key Drivers of Business Value

If you want to make your business more attractive and profitable – no matter whether you’re selling in five or 15 years – these are the areas that count most:

1. Sustainable Growth

Buyers are looking for revenue they can rely on and scale.

Businesses with a clear growth trajectory command higher prices. Demonstrating year-on-year growth or recurring revenue streams shows resilience and future earning potential, making your business a safer bet.

2. Capacity for Scale

Does your business have the systems, people and infrastructure in place to keep growing?

Buyers want to see that your business isn’t overly reliant on you or a few key people. Strong leadership teams, documented processes and scalable systems signal a well-run operation, and give confidence that performance will continue post-sale.

3. Profitability and ROI

The numbers matter.

Profit margins, strong cash flow and a high Return on Investment (ROI) are critical to valuation. Compare your business against top performers in your industry. Those in the top 25% consistently achieve better valuations. Ideally, your ROI should exceed 25% to make your business stand out.

4. Risk Management

Perceived risk lowers value. Buyers don’t want surprises. They want certainty.

The more your business has its legal, financial and operational risks covered, the more desirable it becomes. This includes solid governance, compliance, up-to-date contracts and documented policies.

The Bottom Line: Why It Pays to Start Early

• Preparing your business for sale or succession isn’t just about exiting

• It’s about increasing your return

• The difference between a sale that maximises your life’s work and one that underdelivers often comes down to preparation.

In a crowded market, high-quality businesses will always win. If you’re not where you want to be today, that’s okay – but now is the time to make changes that shift the needle.

At Collins Hume, we help business owners like you understand your business’s value, identify improvement opportunities and put strategies in place to boost both performance and market appeal.

Want to maximise your business value before you exit?

Start the conversation today. Contact Collins Hume’s Strategy360 Business Advisory team to map out your strategy and secure the future you’ve worked so hard to build.