This is the final article of a 6-part series on amplifying company valuation
In our first 5 articles in this series, we reviewed how you can increase what your company is worth during the years leading up to a sale. In this last article in the series, we will explore how you could potentially increase your company's value when it is time to sell.
You have probably heard the saying, “Your business is worth whatever someone is willing to pay for it.” There is actually a lot of truth to this statement. So let’s explore how you could translate this saying into a higher potential value for your company.
Businesses are likely to sell for more when they provide what a buyer is seeking while also having a track record of profitable growth, differentiation, strong leadership, and effective internal operations. But even when the time to sell has arrived, you can still influence the price by helping the buyer discover strategies they could pursue to achieve future profits and growth. This can increase the value of your company relative to other companies the buyer may be considering.
If you choose to discuss future strategies with buyers, ensure you are fully transparent and demonstrate that these are only potential opportunities, without making any guarantees of future returns. But at the end of the day, discussing ways that your business could provide higher returns will get at the heart of what buyers are trying to find.
You can also find additional articles on our blog page or simply reach out to us to learn more.
Comments