Bigger Projects That Increase Value More

Below are 18 “renovation’ projects.” They take longer to complete than “curb appeal” projects described here, but can deliver far more value before sale.

If you want a deeper explanation of why it’s important to complete renovation projects like those listed below before going to market, see these articles from Forbes and Class VI Partners. Ignoring some of these projects can delay or even derail exit plans.

The Renovations Checklist

1. Invite Outside Perspectives. Engage experienced operators or consultants to challenge assumptions and assess whether updated systems and processes could improve efficiency and reduce costs.
2. Outsource to Reduce Complexity. Consider shifting routine functions to cloud-based platforms—for example, accounts payable and receivable management.
3. Revisit Long-Standing Vendor Contracts. Suppliers get complacent. Renegotiating their contracts can reduce costs without disruption.
4. Refresh Product Marketing Materials. Update content, design, and clarity so buyers can quickly understand your value proposition.
5. Reduce Small Client Headcount. The smallest customers can create outsized payment and service hassles.
6. Remove Chronic Underperformers and Malcontents. Even a few can generate unneeded organizational friction.
7. Demonstrate Potential. Launching a new product or service signals continuing growth potential.
8. Exit Declining or Unprofitable Offerings and Markets. Focus on company strengths instead.
9. Plan for Succession. If retirement is on the horizon, identify and start developing a successor. Many buyers—especially PEGS– expect management continuity for some years after close. (See this book’s chapter “Find Your Best Acquirer” for more details.)
   
10. Divest or Spin Off Non-Core Businesses. Buyers focused on your core business are unlikely to value your other businesses fairly.
11. Keep Personal Expenses Personal. Excessively inflating EBITDA by deducting personal expenses you arranged to be paid by the company makes buyers uneasy. Clean books improve trust—and value.
12. Simplify Complex Cap Tables. Consider buying out small shareholders and consolidating share classes. Streamlined governance reduces friction and dissension during buyer negotiations.
13. Increase Industry Presence. Encourage key employees to participate in industry associations and trade groups
14. Convert Non-Assignable Contracts to Assignable Ones. Offer incentives to customers for their cooperation. This reassures buyers that they’ll continue with the company after its sale.
15. Secure Options for Room to Grow. If space is tight, negotiate lease terms with renewal or expansion options. If you have excess capacity in the interim, consider subleasing to increase cash flow.
16. Reduce Customer Concentration. As a rule of thumb, no single customer should account for more than 15% of revenue, and ideally, your top four should be under 40%.

Summing Up

Each of the projects above is practical and discrete. Together, they can increase exit value far more than the time and money you spend to complete them.

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Revised 2/3/26 (c) Kuhn Capital 2026. All rights reserved.