Boost Business Sale Value for SMEs
Accountants Minute 430
Is This Myth Correct?
“It’s a buyer’s market – the vendor cannot improve the price offered.”
Absolutely not.
And as a professional advisor, you are in the perfect position to help disprove it.
The Power of Preparation
Selling a business should start with one crucial question:
“What can we do now to increase the eventual sale price?”
This means working closely with your client to review:
✅ Staff: Can the business operate smoothly without the owner for a month?
✅ Customers: Are they loyal?
✅ Suppliers: Are there strong, dependable relationships?
✅ Premises: Would an upgrade improve performance?
✅ Systems: Is the business scalable and ready for due diligence?
Each of these factors influences the value multiplier — and together, they can bridge what we call the valuation gap.
Bridging the Valuation Gap
Let’s say:
✅ The owner believes the business is worth $1.8M
✅ Your professional valuation shows it’s closer to $1.1M
That’s a $700,000 valuation gap — but it’s not a dead end. It’s an opportunity.
By implementing operational and financial improvements — increasing profit by even $175,000 and achieving a multiplier of 4 — the sale price could rise dramatically.
Think Like a Public Company
Small business owners can benefit from operating with a “public company mindset.”
The changes don’t have to be radical — but they do have to be intentional:
✅ Develop a comprehensive systems manual
✅ Document the company’s Intellectual Property
✅ Implement weekly performance reports and monthly financial reviews
✅ Conduct 12-month rolling cashflow forecasts
✅ Create a Board of Advice or advisory committee
✅ Commit to staff and leadership training
✅ Perform an annual valuation review
These are the kinds of structures that make a business more attractive — not just to buyers, but to investors. And they can elevate a business from a 4× multiplier to as high as 10× — the minimum targeted by companies undertaking their “initial public offer”.
Real Stories, Real Results
A few years ago, one of our clients received feedback from a potential overseas investor:
“Your technology is excellent — but your systems aren’t investment-ready.”
The directors took that advice seriously.
Two years later, after embedding robust systems, governance, and financial disciplines, they sold their business for a price-earnings ratio near an “initial public offer” level.
That’s the power of strategy and structure — not chance.
The Accountant’s Role: From Compliance to Catalyst
Helping a client at the last minute to sell their business isn’t full-service accounting — it’s reactive.
The real value comes when you start early:
✅ Asking what your client wants to achieve.
✅ Building the systems to support that goal.
✅ Measuring valuation improvements over time.
This proactive, advisory approach transforms you from a tax accountant into a trusted business partner — the one who helps clients turn years of effort into maximum reward.
The ESS BIZTOOLS Selling a Business Package
To help you deliver this service confidently, ESS BIZTOOLS has developed the Selling a Business Package, a complete toolkit covering every step from readiness to finalisation.
What’s inside:
✅ Procedure Control Form – Selling a Business
✅ SME Needs Analysis
✅ Due Diligence Checklists
✅ Valuation Templates
✅ Bridging the Gap Action Plan
✅ Confidentiality Agreement
✅ Selling Memorandum Templates
✅ Taxation Issues in the Sale of a Business
✅ Staff Retention Bonus Framework
✅ Reference Papers, Guides, and Client Resources
Don’t Miss Our Complimentary Webinar
Maximise Business Sale Value for SMEs
🗓 Thursday 6 November
⏰ 11:00 AM AEST
This webinar will show you how to help your SME clients prepare achieve top value by identifying and bridging the valuation gap – the difference between what a business is worth and what the owner expects.
Discover proven strategies, planning tools, and checklists from the ESS BIZTOOLS Seling a Business Package to guide your clients from preparation to a successful sale.
Subscription Options
You can access the Selling a Business Package as a stand-alone subscription:
$36 per month (incl GST) for 12 months
or
$330 upfront annual payment (incl GST)
SUBSCRIBE TO SELLING A BUSINESS PACKAGE HERE
The myth that “It’s a buyer’s market – the vendor cannot improve the price offered” has been well and truly disproved.
With the right systems, planning, and financial strategy — guided by proactive accountants — your clients can unlock hundreds of thousands of dollars in additional value.
Visit our website – www.essbiztools.com.au – to discover the detailed overview of the services provided by ESS BIZTOOLS. You are also welcome to contact us on 0418 190 181 or email .
Free Webinar by ESS BIZTOOLS
Crowd Sourced Funding: Capital Raising Opportunities for SMEs
📅 Thursday 30 October | 11am AEST
Maximise Business Sale Value for SMEs
📅 Thursday 6 November | 11am AEST
Starter Package: Your Launch Into Advisory Services
📅 Thursday 13 November | 11am AEST
Advisory on Demand: The Advanced Package Advantage
📅 Thursday 20 November | 11am AEST
Financial Forecasting Package: Advisory With Vision
📅 Thursday 27 November | 11am AEST
Empower Tradies with an Effective Pricing System
📅 Thursday 4 December | 11am AEST
Guiding SMEs to Success Through Business Planning
📅 Thursday 11 December | 11am AEST
Smart Succession Planning for SMEs
📅 Thursday 18 December | 11am AEST
ESS BIZTOOLS Podcast
When smart corporate leaders buy small businesses, they often discover hidden gaps—pricing by margin instead of markup, giving credit too freely, weak debtor follow-ups, and zero cash-flow rhythm.
In this episode of Accountants Minute Podcast, Peter Towers unpacks a real case study and shows how accountants, bookkeepers, and advisors can step in as the strategic partner: install weekly performance reporting, set pricing correctly, tighten credit control, and guide buyers with ESS BIZTOOLS Buying a Business toolkit. Help clients survive the first 6–12 months—and build a business that lasts.
CLICK HERE TO LISTEN TO OUR PODCAST
Listen to more Accountants Minute Podcast episodes here
Want to know more?
Visit www.essbiztools.com.au.
If you would like to have a discussion about how this concept of virtual CFO services can be supplied by Australian accounting firms please ring our Managing Director, Peter Towers, on 0418 190 181 and we will arrange a complimentary 45-minute Zoom meeting to discuss your firm’s position and to give you our advice.
We believe that this is the blueprint for the delivery of an enhanced range of services by Australian Accounting and Bookkeeping firms to assist SME businesses to add value to their businesses and to assist accountants and bookkeepers not only to attract but to retain outstanding talent who want to be involved in the delivery of “real accounting services”.
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