Do you know how to increase the value of your business?
You might answer: "Generate more sales.”
Makes sense, but it may surprise you that increasing sales alone does not necessarily improve business value.
Understanding what drives business value
When it comes to selling a business, value is primarily a prophecy of future cash flows for the prospective buyer, whether the business is sold to an internal or external party. Buyers need to purchase businesses that generate cash so they may pay the former owner and receive a return on their investment.
Value is also impacted by the size of the business as well as the industry and several other factors including:
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Increasing Profits
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Growth Potential
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Clean Financials
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Solid Management Team
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Quality Products & Services
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Strong Sales & Marketing
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Low Risk
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Systems & Processes in Place
Buyers will pay more for quality companies that demonstrate these attributes.
Planning well in advance for your exit will give you the time you need to improve your business and maximize its value.
Are you tired and looking for a way out? Whether you want to sell your business to an insider or to an outside buyer in two years or 10, you have to restore profitability and business value. In order to do this you will need to change your mindset and think like a buyer!
Join us for our upcoming workshop:
Rebuild your business with your exit in mind.
