If you’re wanting to sell your business, you’ll quite naturally want to have the best valuation possible.
There are many elements to maximizing the sale value of a business, but have you considered sustainability?
A business that has embraced sustainability will be worth more than one that hasn’t, all other things being equal. Here’s why:
Running Costs
A business that has a high performance premises and process – low heat loss, the most efficient technology and maybe on-site renewables will have the lowest possible running costs, and that will be very attractive for a buyer. That buyer will be confident that the premises and the process are fit for the future under their ownership, no unexpected surprises.
Even if you don’t wish to make those investments prior to sale, having identified the opportunities and developed a strong business case for them will give comfort to any potential buyer, and save them the time involved in doing that analysis themselves.
Compliance risk
An environmentally responsible business will have a reduced compliance risk with respect to environment protection regulations. Moreover, increasingly, Carbon Reduction Plans and Environmental Policies are becoming a ‘ticket-to-trade’ with both the public and private sectors.
Appeal and reputation
A business with strong environmental credentials and robust policies in place appeals to the widest possible range of customers. There is strong evidence that consumers are more loyal to businesses that they ‘like’, and sustainability (along with cost, quality, service etc.) is one of the key aspects of customer loyalty.
Marketing Advantage
Whilst being wary of ‘Greenwashing’, the careful and considered promotion of a business’s environmental credentials and ambitions gives that business a message that can set it apart from its competitors.
All of the above will add value to your business, and none are hard or expensive to implement. They will take a bit of time and effort however, in order to be credible, but then getting the right deal when selling your business rarely happens overnight.
If you want the best deal for your business, you have to invest in it, and this will be one of the best returns.