An easy way to improve the sale price of your company

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Published: 16 Jul 2019

One of the reviews we carry out in helping clients to realise the best possible price for their company is to examine what possible savings can be made on costs. Obviously, any significant saving enables the seller to negotiate a higher price.

One area of cost saving that can be brought into play quite easily is the use of an energy broker. It does not cost you a penny other than, say, an hour of your time and the cost of emailing a copy of your latest electricity and gas bill to the energy broker. The energy broker reviews the whole market to find the best price and supply for your company.

Say the energy broker can reduce your energy costs between £500 and £1,500 per annum. If the agreed profit multiple for company valuation purposes is between 3 and 7, the reduced energy costs could increase the sale price between £1,500 and £10,500. Not a huge fortune, but it could at least pay for the sale costs or enable you to make a down payment on the Jaguar I-Pace electric car that you are thinking of awarding yourself on retirement!

Even if you are not intending to retire in the near future, the annual cost saving could be worthwhile taking advantage of now.

If you wish to investigate this further for either your company, or your business clients or customers, call David Cane on 07749 080 806 or email him here.