There is typically a premium for larger companies. Smaller companies have fewer employees, smaller client bases, shallower management depth, and less diversification. Many buyers set minimum criteria for companies they will purchase. But being too large can also be a problem. If your only goal is size or dollars under management, profits are often sacrificed.
Profits are, after all, what buyers buy.
If you have targeted niche markets and streamline your operations, you can create a tremendous amount of value with few employees. Effective Information Systems Financial statements provide a record of the results of your company's operations and a statement of assets and liabilities. Buyers are turned off by foggy or incomplete financial records. A potential buyer will lose confidence in your company's credibility if they can't understand your financial reports. To increase the value of your business, work with a CPA to develop accurate and effective financial statements.