United Kingdom 
South Africa 
The latest research shows that the average age of directors in UK companies is now falling. The number of employers in the UK is also starting to decrease as more baby-boomer founders begin to exit their companies.
If you are considering selling your business at some point in the future, you should start to plan for that exit as soon as possible.
How to increase the value of your business before planning an exit
Ahead of marketing a company for sale, exit planning will help you increase the value of your business to potential purchasers and generally prepare for the process.
One key metric which impacts the attractiveness of any business to buyers is its working capital position.
If you can show that your company manages its cash flow well, then it will be deemed to be a lower risk when potential buyers are carrying out their due diligence.
Signs of strong working capital management to buyers
In order to present a strong working capital position to potential buyers, you should be able to demonstrate that:
- You have an understanding of your projected cash flows and rarely have funding crises.
- The company has strong track records and good relationships with a range of potential lenders.
- Commercial decisions have been made to utilise excess capital reserves, so that reinvestments increase profits and provide a return on investment.
- Credit control is well managed and your trade debtor risk is tracked.
- Supplier finance is used well, as a means of funding the business at a very low cost.
How to improve your capital and credit positions
Businesses without a strong credit score may struggle to secure funding at the best rates and could find it harder to get favorable credit terms from suppliers. So, if your business credit score is low, it’s important to take steps to improve it and set your business up for success.
Our Credit Review Service can help your company achieve the strongest business credit score possible, by having it professionally reviewed. In 96% of cases, this results in an improvement. With a stronger business credit score, it makes it easier to access funding and negotiate better terms with suppliers. With stronger negotiation power, you’ll be able to secure more favorable terms, which will help strengthen your capital position.
With a Capitalise for Business account, you can also track your customers’ business credit scores. This allows you to spot potential red flags that could lead to late or missed payments, helping you stay on top of debtor risk in real time.
Exit planning for successful outcomes
If you include optimising your business credit score, working capital and cash flow management in your exit planning, you will find you are likely to have a more successful disposal when you do choose to sell.
And in the meantime, you’ll have the benefit of running a company with lower and well-managed risks.
