As year-end approaches, most business owners shift their focus to financial reviews, inventory counts, and final reconciliations. It is the annual push to wrap things up neatly for accountants and tax planners.
But the most successful owners know something others miss:
Year-end is not just about closing the books; it is about preparing the business for what comes next.
This is the ideal moment to step back, zoom out, and assess your company from a strategic perspective. If a buyer, banker, or investor evaluated your business today, what would they see? The answer to that question should guide your planning for the next three to five years.
- Assessing Your Business Value
Start by understanding how your business value has shifted over the past year:
- Have revenues grown consistently?
- Are margins stable or moving in the wrong direction?
- Has your customer base diversified, or is dependency still a risk?
These are the same variables that drive valuation in any future sale or financing. If you have not had a valuation or performance review in a while, year-end is a great time to get one. Even if you are not planning to transition immediately, knowing where you stand provides a clear roadmap for improvement.
- Strengthening Your Financial Foundation
In M&A, clean and organized financials are not optional; they are a strategic asset.
Buyers and lenders want predictable visibility into your revenue, profitability, and cash flow. Gaps in reporting or unclear expenses create friction and slow deals down.
Work with your accountant or advisor to prepare deal-ready financial statements that tell a transparent, compelling story about your business. This will make you more attractive to buyers or investors and will also elevate your internal decision-making.
- Retaining Key People and Customers
Your people and your customers are two of the most important drivers of enterprise value.
As the year ends, take time to:
- Identify your key employees
- Consider long-term retention strategies
- Evaluate compensation or bonus structures
- Strengthen communication and alignment
Do the same with your top customers. Are there contracts, agreements, or relationships that should be reinforced heading into next year?
Retention, stability, and continuity are qualities every buyer values, and they directly affect valuation.
- Planning for the Next Three Years
Year-end is a perfect checkpoint to refresh or build your three-year strategic plan.
This does not need to be overly complex, but it should clearly outline:
- Growth priorities
- Investment requirements
- Operational improvements
- Exit readiness milestones
If you anticipate transitioning ownership, whether through a sale, merger, or management buyout, starting early is the best way to maximize value and minimize disruption.
- Making Next Year Strategic
Strong year-end planning blends financial discipline with strategic thinking. It is about understanding where your business stands today and shaping where you want it to go.
If you are thinking about selling, growing, or simply building a more resilient company, now is the time to act. The moves you make before December 31 will influence the opportunities available to you in the year ahead.
Interested in making next year your most strategic and most valuable one yet?
Let’s start the conversation.
Jim Friesen, MBA, CPA, CM&AA
Founder
