Standard Operating Procedures

The Bigger Picture In Selling Your Business

What Do Standard Operating Procedures Mean?

Standard Operating Procedures (‘SOPs’) are well-documented and established operational measures and processes put in place in a business by its management so as to ensure that the company’s activities, products and services are effectively and efficiently undertaken according to expected standards.

A business operated by productive standard operating procedures is not only well run, it is also perceived by potential buyers to be well run. This combination of reality and perception can increase the valuation of the business when put up for sale. The standard operating procedures efficiently and sufficiently enable the business to be run without the vendor. This is re-assuring for a potential buyer – that the company is not dependent on the vendor to operate and gives the potential buyer great opportunity to grow and expand the business after acquiring it.

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