Value enhancement service

Value enhancement service

Some of the value drivers that drive valuation are listed below – We will work with you to enhance the value of your business prior to commencing any business sale.

  • FINANCIAL
    Driver #1: Stable / Growing and Predictable Cash Flow
    Driver #2: Reliable, reliable and consistent financial Information
    Driver #3: Margin Advantage
    Driver #4: Positive EBITDA (earnings before Interest, Tax, Depreciation and Amortisation)
  • CUSTOMER
    Driver #5: Customer Diversity
    Driver #6: Sector Diversity
    Driver #7: Growth Potential
    Driver #8: Geographical Diversity
    Driver #9: Responsiveness to customer needs and market changes
    Driver #10: Goodwill
  • PRODUCT / SERVICE
    Driver #11: Barriers to Competitive Entry (including intellectual property rights)
    Driver #12: Product Diversity
    Driver #13: Quality Designs and Output
    Driver #14: Intellectual Property (IP) and Patents
    Driver #15: Innovation
    Driver #16: Brand Reputation and Awareness
  • PERSONEL
    Driver #17: Human Capital / Quality of Workforce and Management
  • OTHER
    Driver #18: Operating Systems and Procedures
    Driver #19: Facility and Equipment Condition
    Driver #20: Lack of Legal Disputes
    Driver #21: Few Uncertainties

Prior to commencing the sale we can review all of the areas above with management and make an assessment as to whether improvements can be made in a given time. To identify the Value Drivers on which to focus, we address two key questions:

  • Which factors will have the most significant impact on the future value of the business?
  • Which of those factors can be most effectively managed?

Sometimes it is better to delay a sale for 12 to 18 months to maximise sale value.

Remember – Buyers pay for the past, but buy for the future.

If you are considering selling your business within a shorter time frame, focus with us on the factors that will yield the greatest impact over that shorter term.

The look of success on adding value – never a straight path in reality

The look of success on adding value

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