To improve your DSCR and make your business more attractive for a sale, consider these actions:
- Increase profitability: Increase your revenue or reduce operating expenses to increase your cash flow
- Reduce debt: Pay down existing debt to lower your debt service obligations.
- Manage cash flow: Improve your company's cash flow management to ensure you have sufficient cash available to meet debt obligations.
- Improve operating performance: Historical operating performance is an important metric for lenders.
By understanding DSCR and taking proactive steps to improve it, you can significantly enhance your business's appeal to potential buyers and lenders, leading to a smoother and more successful exit.