Business tips: Adding value to your business prior to an exit

Binghay Co • June 15, 2022

Generally speaking, an exit strategy will be put in place years before your planned exit date. This gives you time to work on your sale plan and deal with any succession issues. But more importantly, it gives you the time needed to add additional value to the business prior to a sale.


Every business has its own unique sale value, based on the size of the business, the worth of its assets and the perceived value of the company on the open market.


But what can you do to add value to your business and achieve a better sale price?

Make sure you're running a tight ship


When you sell a house, estate agents will advise you to redecorate, clear out the rubbish and add more to your sale price as a result. The same is true of selling a business.


A potential buyer will generally want to purchase a business that’s in good shape. Sometimes a buyer will purchase a badly performing business to either a) whip it back into shape, or b) buy it cheap, sell off the assets and make a profit. However, if profit is what they’re looking for, a well-organised and efficient business is a better prospect.


Adding value starts by doing your housekeeping and making sure the whole business is in a good position to hand over. That means having:

  • Modern, digital systems to keep your operations efficient, secure and well integrated
  • Excellent record-keeping, compliance and governance procedures in place
  • An excellent customer base to provide stable sales and good revenues
  • A good brand awareness and positive reputation in your sector
  • Efficient executive, management, operational and administrative teams to run the business in the smoothest and most effective ways.


Resolve any ongoing business issues


Every business will have a few ongoing business issues to contend with. These could include legal worries, court cases or bad debt in the business, and they can all have a negative impact on the company's value. The more you can do to resolve these issues and present a worry free environment for the new owner, the better.


Work with your lawyers, HR advisers and accountants to find resolutions for any long-standing problems in the business. If you can hand the business over without a long list of potential headaches for your buyer, that’s likely to add value to the business. Trust is also important in a sale. Being transparent and open about any previous issues will also create a better relationship between you (the vendor) and your buyer.


Improve your financial health


Most buyers will be looking to purchase your business and turn a healthy profit. To do this, they’ll want to know that the company is financially healthy. This means having books that balance and plenty of potential for them to continue this company as a profitable venture.


So, which areas of your finances should you be looking at? The key here is to be in control of your financial management, and to have a strategy in place that will improve each area of the business over time as you near your sale date.


This will include

  • Strengthening your balance sheet, so you can present an attractive set of accounts
  • Improving your profit and loss, by increasing revenues and cutting your expenses
  • Boosting your cashflow position through careful cashflow management
  • Reducing your debt liabilities, by resolving late payments and bad debts
  • Polishing up your credit score, by partnering with a credit improvement specialist
  • Making sure the business is well funded, by working closely with lenders.


Get your executive team ready to take over


You may well remain the lynchpin in your current business. But a business that’s still 100% reliant on its founder is not an attractive proposition to a buyer. If the business is still reliant on your everyday operational input, and you then walk away, that business can no longer function effectively. To remedy this, you need to step back and get your team ready to take over.


The easiest way to do this, is to think about the key areas where you still have input, and to then systemise these and put them under the remit of a member of your executive team. If you’re still signing off the payroll, pass this to your finance director. If you’re still taking part in all client sales presentations, defer this to your sales director.


You'll need to be able to sell up and step away from the business without there being any operational or leadership issues for the new owner.


Work with your advisers to proactively add value


A good firm of advisers delivers a range of different advisory services. By gradually enhancing every element of the business, you’ll end up with a far more attractive business to sell.


Keep any staff problems, legal issues or accounting challenges to a minimum, so the business is as attractive as possible to potential buyers, and the sale can be completed quickly.


Talk to us about adding value your business


To meet your personal and financial goals for this business sale, you want your company to be an attractive proposition on the open market. This process of added value isn’t instantaneous, but with the right advice and planning, you can move towards a more valuable sale price.


If you’re in the process of planning your exit, do come and talk to us. We’ll help you plan your exit strategy, adding value at each stage of the plan to boost your return from the sale.

If you want to learn more about this topic and how we can help your business, contact us to set up a FREE consultation so we can get started. 



Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

What the new anti-money laundering and counter-terrorism financing rules mean for our services

By Binghay Co • July 27, 2026
From 1 July 2026, thousands more businesses—including accounting and professional services firms - are now regulated under Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) laws. This includes newly regulated sectors such as accounting, real estate, conveyancing, legal services, as well as dealers in precious stones and metals.Under these new laws, such businesses must meet additional obligations, including: - implementing AML/CTF programs, - conducting customer due diligence, - reporting suspicious matters, and - keeping relevant records. Are all accounting services now regulated? In short, no. Only some services provided by accountants are considered regulated services (known as designated services). Some examples of when the AML/CTF regulations may now apply include when an accountancy firm: - helps create or restructure a company, - assists in the planning or execution of a transaction to sell, buy, or transfer a company, - receives, holds, controls or manages a client’s money to help plan or execute a transaction, - provides a registered office or principal place of business address. This list isn’t exhaustive. For a full list of designated services, refer to AUSTRAC’s website.As a general rule, general tax return preparation, bookkeeping, and payroll services are not considered designated services. What do these changes mean? Some of our onboarding and engagement processes may look a little different from 1 July, and we may have some additional questions or require extra documentation before we start to provide a designated service. These changes are necessary for us to remain compliant with AML/CTF laws, no matter how long we’ve worked with a client. If you have any questions about these changes, as ever, please feel free to get in touch.

Managing the transition to Payday Super

By Binghay Co • June 1, 2026
In just a few weeks, Payday Super will finally go live. From 1 July 2026, quarterly super contributions for employees will end. Instead, employees’ super will need to be paid at the same time as their salary and wages, with payments typically due in employees’ super accounts within seven business days after payday. But with such a big change on the horizon, employers need to know the process for settling their employees’ super obligations for the quarter ending 30 June 2026, and how to smoothly transition to the new Payday Super rules from 1 July 2026. Settling super for the quarter ended 30 June 2026 The quarter ended 30 June 2026 is the last period for which the current quarterly super payment rules apply. Employers will need to calculate their employees’ super based on their ordinary time earnings and pay that amount in full, on time, and to the correct fund by 28 July 2026. If an employer misses the 28 July deadline, a super guarantee charge (SGC) statement will need to be filed and any SGC paid for the quarter ended 30 June. Note that the late payment offset is not available for this final quarterly payment. Crucially, keep in mind that any super payments received on or after 29 July will be applied under the new Payday Super rules, even if the employer intended these payments to be made for any super owed for the June quarter. Running payroll under Payday Super From 1 July 2026, Payday Super is in effect, with super guarantee payments based on an employee’s qualifying earnings from 1 July 2026 (even if the work that earned that pay was done before 1 July). Under Payday Super, super guarantee payments should generally arrive within an employee’s super account within seven business days after payday (there are times when this deadline is longer, for example in the case of a new hire). Be aware though, any contributions received into an employee’s fund on or before 28 July will actually reduce any super owing for the quarter to 30 June 2026 in the first instance. Once super for the June quarter has been settled, any remaining contributions will then be counted towards the amount due under Payday Super. While this is an important quirk in the rules, the reality is that if an employer pays the correct amount for both their June quarter and first Payday Super payment, then both sets of contributions will be made on time, and there won’t be any risk of incurring penalties for late payment. Ready for Payday Super? Do you have any last-minute questions about Payday Super, or worried about how to handle the changeover period? Speak to a member of our team today – we’d be happy to help.

Federal Budget 2026-27: Key Announcements

By Binghay Co • May 15, 2026
On Tuesday, 12 May 2026, Treasurer Jim Chalmers delivered the ‘most important and ambitious Budget in decades’. Certainly, the 2026-27 Federal Budget was ambitious, announcing significant reforms to capital gains tax and negative gearing in a bid to support home ownership and improve the fairness of the tax system. Outside of those headline changes, targeted cost-of-living support was announced for Australian workers, including a $250 Working Australians Tax Offset, while businesses also received some relief thanks to the $20,000 instant asset write-off being made permanent, alongside loss relief reforms for companies. Key Budget tax announcements Capital gains tax reform From 1 July 2027, the 50% capital gains tax discount (which was introduced back in 1999) will be replaced by cost base indexation for assets held for more than 12 months, with a 30% minimum tax imposed on most net capital gains. All CGT assets – including pre-1985 CGT assets – held by individuals, trusts and partnerships are affected by these changes. However, transitional arrangements mean the reforms only apply to gains accruing on or after 1 July 2027. Gains on pre-1985 assets accrued before 1 July 2027 will remain CGT exempt. Investors in new residential properties will be able to choose either the 50% CGT discount, or cost base indexation and the minimum tax. Negative gearing curbed Under the current system, losses from a rental property can be used to reduce other forms of taxable income (e.g. salary and wages) in a process that’s known as negative gearing. From 1 July 2027, losses related to established residential investment properties purchased from 7.30pm AEST 12 May 2026 will only be deductible against rental income or capital gains from residential property. Excess losses will be carried forward for offset against residential property income in future years. This change applies to individuals, partnerships, companies and most trusts. Superannuation funds, including SMSFs, are excluded from the changes. Investors in established residential properties acquired prior to 7:30pm AEST 12 May 2026 can continue to apply the current negative gearing rules until the property is sold. Properties purchased between announcement and 30 June 2027 may be negatively geared during this period, but not from 1 July 2027. A specific carve out is included for investments in eligible new builds, which can continue to be negatively geared before and after 1 July 2027 (i.e. current negative gearing rules remain in place). Individuals A new, permanent Working Australians Tax Offset of $250 will apply from 1 July 2027, available to those who derive income from work, such as employees and sole traders. Originally announced during the 2025 Federal election and reconfirmed at the Federal Budget, a $1,000 instant tax deduction is to be introduced from 1 July 2026, benefitting Australian tax residents who have low work-related deductions. Importantly, there will be no substantiation requirements to claim the deduction. Individuals with work-related expenses over $1,000, or who earn only business or investment income, can continue to claim their deductions in the usual way. While not a new Federal Budget measure, already-legislated changes in personal tax rates will shortly come into effect. From 1 July 2026, the tax rate that applies to taxable income between $18,201 and $45,000 will reduce from 16% to 15%, falling further to 14% from 1 July 2027. Instant asset write-off now permanent From 1 July 2026, the instant asset write-off is permanently extended to $20,000 for small businesses with turnover up to $10 million. Assets valued at $20,000 or more can continue to be placed into the small business simplified depreciation pool. Loss relief for companies From 1 July 2026, companies with aggregated annual global turnover of less than $1 billion will be able to carry back a tax loss and offset it against tax paid up to two years earlier. This change applies to revenue losses only and will be limited by a company’s franking account balance. Small start-up companies will also be able to access ‘loss refundability’. From 1 July 2028, start‑up companies with aggregated annual turnover of less than $10 million that generate a tax loss in their first two years of operation will be able to utilise the loss to generate a refundable tax offset. However, the offset will be limited to the value of fringe benefits tax and withholding tax paid on Australian employee wages in the loss year. Minimum tax on discretionary trusts From 1 July 2028, and subject to certain exceptions, trustees will pay a minimum tax of 30% on the taxable income of discretionary trusts. Beneficiaries, other than corporate beneficiaries, will receive non-refundable credits for the tax payable by the trustee. This change does not apply to other types of trusts (e.g. fixed and widely held trusts (including fixed testamentary trusts), complying superannuation funds, special disability trusts, deceased estates and charitable trusts). Expanded rollover relief will be provided for three years from 1 July 2027 to support small businesses and others that wish to restructure out of discretionary trusts into another entity type, such as a company or a fixed trust. Fringe Benefits Tax and EVs From 1 April 2029, a permanent 25% discount on fringe benefits tax (FBT) will be available for all electric cars valued up to and including the fuel‑efficient luxury car tax threshold. All electric cars valued up to and including $75,000 that are provided before 1 April 2029 continue to be eligible for a 100% discount on FBT. Electric cars valued above $75,000 and up to and including the fuel‑efficient luxury car tax threshold that are provided between 1 April 2027 and 1 April 2029 will be eligible for a 25% discount on FBT. Administration Expansion of the ATO’s pilot of ‘dynamic’ pay as you go (PAYG) instalment calculations, with expanded access to monthly payments. From 1 July 2027, small and medium businesses can opt in to reporting and paying PAYG instalments monthly and to using an ATO-approved calculation embedded in accounting software to calculate and vary their instalments. Taxpayers with a demonstrated history of non‑compliance will also be required to report and pay PAYG instalments monthly. The Government has also confirmed that it will work with the states and territories to harmonise payroll tax administrative arrangements.