Increase Your Company’s Valuation and Maximize Its Selling Price

At Advanced Business Brokers, we know that business valuation is top of mind for most owners. And, while it factors in a ton of variables, the value of your business is directly tied to efforts you make. To achieve the highest valuation, many business owners only look at a few things: increasing sales, improving cash flow, and reducing costs.

But, if you want to increase the value of your business, it’ll take more than revenue growth.

To gain a competitive advantage, you should consider a host of factors that don’t just impact your business’ current value, but also its future value. If your goal is to realize the highest price, you’ll want to think about leasing terms, recurring revenue streams, employee retention, customer relationships, market share, and your growth plan.

In most cases, buyers are taking a significant risk. And, with risk comes hesitation. But, if you start planning now, you can raise your market value above industry averages, become more attractive to potential buyers, and ensure a smooth transition to the new owner.

How To Increase Company Valuation

Before anything else, let’s look at how you can positively impact the value of your company. Of course, business value is based on several factors, so you’ll need to weigh the pros and cons of each of these factors. But, in general, company valuations will be increased by the following.

Factors Beneficial To Valuation

  • A provable record of increasing revenue and long-term growth
  • Ten or more years in operation
  • A substantial inventory of tangible assets
  • Clear reasons for selling the business
  • Planned retirement or exit strategy by the owner
  • Absentee ownership
  • A competent, effective management team
  • Long-term, highly skilled employees
  • A loyal customer base
  • High-traffic or otherwise convenient locations
  • Operating in a high-volume or high-demand industry
  • Competitive advantages in the market
  • Proprietary, patented, or trademarked intellectual property
  • Documented ways to spur growth and increase revenue
  • Accurate and up-to-date financial records
  • Property, equipment, and assets in good condition
  • Long-term contracts, leasing terms, or property ownership
  • Favorable financing terms

Factors That Decrease Business Valuation

On the other hand, there are several factors that can decrease your selling price. Depending on the nature of your business, some of these can be challenging to avoid. However, if your goal is to maximize your selling price, you’ll want to address as many of these issues as possible.

Factors Detrimental To Valuation

  • Unstable or unpredictable profitability
  • In operation for less than three years
  • Few or no on-hand assets
  • Unclear reasoning for the sale
  • Business is unable to operate without the owner present
  • Family, partners, or difficult individuals involved in operations
  • High employee turnover or a low number of trained staff
  • Small base of customers
  • A handful of large customers accounting for most business
  • Low difficulty level or no skill barrier
  • Diminishing opportunities to grow or increase sales
  • Unclear, incomplete, or spotty financials
  • Worn-down assets in need of expensive repairs
  • Dangerous, disorganized, or unsafe property
  • Poor leasing or contract terms
  • Low-traffic or inconvenient location
  • Operating in a low-volume or low-demand industry
  • Insistence on an all-cash transaction

Need advice on how to increase your business value?

At Advanced Business Brokers, we strive to offer our clients clear, actionable guidance. If you’re a small business that’s considering selling, we can work with you to maximize the selling price of your company. With decades of experience, we can help large and small businesses locate a potential buyer, vet their capabilities, and ensure a smooth transition to the new owners.

As a business owner, you owe it to yourself to work with the industry’s best.

As part of our services, our team will provide you with an accurate valuation of your company. Once you’ve received it, you’ll be able to better understand the steps you need to take to boost your odds of selling at a higher price.

So, whether you have an exit plan in place or not, we encourage you to reach out to us today. We’ll walk you through the selling process, discuss your options, identify opportunities, and help you increase the selling price of your company.

Work With An Experienced Business Broker

If you’re thinking about selling your business and don’t know where to start, consider speaking with our team here at Advanced Business Brokers. We specialize in brokering and advising exit plan strategies for various sizes/sectors of businesses.

Read More from ABB

Bob Paden

With over 25 years of dedicated experience, Bob empowers small business owners in the Indianapolis metro area to achieve their entrepreneurial visions, whether by building scalable operations or crafting highly sellable entities. For three decades, he’s cultivated a robust network of owners, buyers, and strategic partners, a resource he fully leverages to help clients meet their unique objectives.

Bob’s expertise spans a diverse range of industries, including trade-based businesses like construction, HVAC, skilled trades, and manufacturing, as well as white-collar professional service firms such as law, finance, marketing, and technical services. Beyond his client work, Bob actively contributes to his community, serving as Treasurer for the Boone County Chamber Board and as well as a board member for both the Central Indiana Police Foundation (CIPF) and Fiscal Sponsorship Allies (FSA).  

Bob holds a degree in Mechanical Engineering Technology from Purdue University in West Lafayette, Indiana, and teaches there as well in the Certificate in Entrepreneurship and Innovation Program, which is ranked among the Top 50 programs in the U.S.

He lives with his wife Lori in Zionsville, just outside Indianapolis, and in his free time, he enjoys working on his home, playing golf, and traveling.

Marissa Ihssen

With a degree in psychology and a professional background in social work, Marissa
brings a people-centered lens to every project. Her experience includes being a Project
Planning Specialist at GE Aerospace, creating efficient processes and structures that
help teams work smarter and stay aligned. Marissa joins the Main Street Market Maker
team with Advanced Business Brokers to dedicate time and attention to smaller
business opportunities and provide excellent and supportive customer service.
Outside of work, she is a mom of three young men who finds joy in the everyday chaos
of family life. She loves strong coffee, warm beaches, and any excuse to spend time in
the sunshine. Hot yoga and hammocking are some of her favorite ways to reset and
stay grounded and help her show up with more presence both at home and in my
professional life.

Steve DeMaio, JD, CEPA

Steve brings more than 20 years of experience as a legal and financial professional to
his work with business owners preparing for transition and sale. He advises owners and
their families through every stage of the exit planning and transaction process, with a
focus on thoughtful assessment, risk management, and strategic value enhancement.
Steve is a Certified Exit Planning Advisor (CEPA®) and an active member of the Exit
Planning Institute. He previously served as Director of the Small Business Development
Center in Toledo, Ohio, where he worked closely with entrepreneurs across a wide
range of industries on growth, financing, and succession planning initiatives.
Earlier in his career, Steve practiced law with a nationally recognized Chicago-based
law firm and held roles in capital markets and commercial banking with leading financial
institutions. This multidisciplinary background allows him to approach business
transactions with a practical understanding of legal, financial, and operational
considerations.
As a business broker, Steve specializes in industrial and manufacturing companies,
skilled trades, and professional service firms, including marketing, staffing, and financial
services businesses. Steve earned his Juris Doctor from Loyola University Chicago
School of Law and a bachelor’s degree in economics from the University of Notre
Dame. He lives in the Toledo area with his wife and two daughters. Outside of work, he
enjoys traveling, cooking, and spending time at his family’s lake house.

Dr. Mark Hagar

A lifelong resident of Fort Wayne, Indiana, Dr. Mark Hagar brings decades of hands-on experience in small business ownership, acquisitions, and turnarounds to his role as a business broker. Over his distinguished career, he has acquired and operated more than 20 companies and engineered over 50 successful turnarounds, giving him a uniquely practical understanding of what makes businesses succeed, and sell. His portfolio spans manufacturing, distribution, and service firms in industries including printing, education, military contracting, aerospace, and orthopedics. This diverse background enables him to identify value, anticipate buyer needs, and structure complex deals with confidence and precision.


Mark holds a Doctorate in Business Administration (DBA) from Cranfield University’s School of Management in Bedford, England—one of Europe’s leading business schools. His research on small business resilience and operational excellence has been recognized by the Small Business Institute (SBI), the United States Association for Small Business and Entrepreneurship (USASBE), and the International Council for Small Business (ICSB).


In addition to his business career, Dr. Hagar has served as a member of faculty at several institutions of higher education, including Holy Cross College (Notre Dame), Trine University, and the University of Saint Francis. He also hosted Your Business Matters, a small business–focused radio show and podcast for more than a decade and is the author of Small Fortunes – the Acquisition Entrepreneur’s Guide to Buying a Profitable Small Business.


A passionate advocate for entrepreneurs, Mark previously chaired the Indiana Leadership Council for the National Federation of Independent Business (NFIB), representing small business owners before state and federal legislators. He currently serves as President of the Allen County, Indiana Economic Development
Commission.


As a broker, Mark specializes in industrial, manufacturing, and distribution firms, with particular expertise in special situations, distressed assets, and complex transitions where experience, creativity and discretion are central to success.