Eliminating bad debt can make your company a lot more attractive on the market.
Having a well-financed business that doesn’t depend on bad resources of debt goes quite a distance to making a company appealing to buyers and making certain it fetches an attractive valuation. But, the options that create a good balance sheet don’t happen overnight; it requires years of preparation to guarantee the greatest sale years later.
It’s a great time to sell your small business: in the first quarter of 2017, 2,368 deals closed, up 29 percent from a year earlier, according to BizBuySell’s Insight Report. However, only 1 in five listings on the web marketplace for selling smaller businesses closed a deal in 2016. Having good financing has become the important factors leading to successful sales. At its simplest, attractive companies are financed by good debt while unattractive companies are built on bad debt. Often, decisions about finances made early in the life span of a business determine whether a business could be sold successfully years later.