Questions and answers about selling a craft business and increasing its value
Where can I get help selling my craft business?
A first point of contact for a planned sale of a business is the responsible Chamber of Crafts. They will advise you free of charge and in a legally secure manner on all aspects of taking over a business. Furthermore, specialized tax and legal advice will also help you.
What is the value of my craft business measured by?
The value of your craft business is made up of various factors. These include key figures such as turnover, the equipment of your business, which includes the vehicle fleet, tools and machines, but also structural aspects such as the dependence of the business on the owner or the status quo of digitalization.
How do I increase the value of my craft business?
There are several steps you can take to increase the long-term value of your craft business. These include:
- Reduction of the dependence of the business on the owner
- Transparent and traceable operating processes
- Strengthening customer relationships
- Enlargement of the customer base
- Improving employee retention
Anyone who cannot or does not want to bequeath the business within the family must therefore think about selling the business four to five years in advance. In the course of this, it is relevant how the farm value is determined.
There is no such thing as a universally valid operating value. In practice, this means that various methods exist for determining a financial value. The AWH method has become established for the skilled trades, as it takes into account the special features of small and medium-sized skilled trades businesses. In addition to the earnings and the fixed assets of the business, this includes the dependency
- by the holder
- from the employees
- from the existing customer base
- From suppliers
- from the current service offer
Since a business handover is usually prepared and planned many years in advance, you can increase the value of your business even further in the remaining time. Various short- and long-term measures are available to you for this purpose.
Long-term measures to increase the value of your business
Selling a craft business is not a sprint, but a marathon, as succession consultants like Thomas Nehls know. That's why it pays to invest in value-enhancing measures that will have an impact over the coming years. These include:
- Skilled workers: Since your employees have to be taken on, buyers naturally look for businesses with qualified skilled workers. Regular training and continuing education increase the expertise in your team.
- Customer base: A business that has as large and loyal a customer base as possible is worth more than one that depends on a few clients. With targeted marketing, you become visible and attract new customers.
- Range of services: The more diverse your range of services, the more potential customers will benefit from your services. But be careful: Quality comes before quantity. Only offer services that you and your team really know how to provide.
Short-term measures to increase the value of your operation
Even by making small changes, you can achieve great things in terms of value increases and ensure that your business continues to run smoothly after you leave. This is a very important aspect of the handover, as Thomas Nehls knows from years of experience: "Often businesses are tied to the person of the owner, which can lead to problems when selling." The good news is that you can start today and make a big difference with these two measures.
- Optimization of business administration: If your craft business is efficiently Organised and thus no longer dependent on you, this makes it easier to take over - and increases the value of the business. Standardized processes help!
- Digitization of operational processes: Digital tools simplify the day-to-day work of you and your employees on the construction site and in the office. Special craftsman apps or software not only save you time, but also increase the value of your business.
With the Meisterwerk app, you can kill several birds with one stone when it comes to increasing the value of your business. Thanks to the intuitive app, you can easily map your processes digitally and Organise your business with just a few clicks. And if one day you no longer do it yourself, simply hand over access to your successor.
Take advantage of these features:
- Manage job planning and deadlines
- Map internal processes
- Share information with employees
- Record work hours
