Exit Planning is something I recommend to all company owners.  There are nearly 20 million companies in the US with sales less than $100 million.  Over 70% of these are likely to be ready for an ownership transition over the next 10 to 15 years - as the Boomer generation retires.  But only 20% of listed businesses actually sell.  An Exit Plan can help in several areas: it not only helps an owner decide when and how they will make an exit, it also helps them start to build the value of their business over a set time period.  Since all business valuation techniques ultimately center around a multiple of profitability, focus on revenue, profits and cash flow will all help increase business value.

An BNET article by John Warrilow suggests 9 Ways to Make your Business more valuable in 2011.  In particular, I like:

1. Predictable and Increasing Profits: Increase both profits and the multiple at which your value is created by developing steadily increasing profit margins.  This demonstrates to potential acquirors that your business is growth oriented and well managed.  Focus on planning, cost control and process improvements will all help to develop continual improvements in profitability.  Evaluate vendors and purchasing strategies continually to find extra savings.

2. Diversify your customers: A business that relies on a larger number of customers is considerably more valuable that one that is hostage to one or two large customers.  While having Walmart as a customer might seem like a winner, it could spell disaster if that is your only customer.