-

The value drivers to increase the value of your business prior to a sale

The value drivers – We will work with you to increase the value of your business prior to commencing any business sale if time permits.

FINANCIAL
Value Driver #1: Stable / Growing and Predictable Cash Flow
Value Driver #2: Reliable Financial Information
Value Driver #3: Margin Advantage
Value Driver #4: Positive EBITDA

CUSTOMER
Value Driver #5: Customer Diversity
Value Driver #6: Sector Diversity
Value Driver #7: Growth Potential
Value Driver #8: Geographical Diversity
Value Driver #9: Responsiveness
Value Driver #10: Goodwill

PRODUCT / SERVICE
Value Driver #11: Barriers to Competitive Entry
Value Driver #12: Product Diversity
Value Driver #13: Quality Designs and Output
Value Driver #14: Intellectual Property (IP) and Patents
Value Driver #15: Innovation
Value Driver #16: Brand Reputation and Awareness

PERSONEL
Value Driver #17: Human Capital / Quality of Workforce and Management

OTHER
Value Driver #18: Operating Systems and Procedures
Value Driver #19: Facility and Equipment Condition
Value Driver #20: Lack of Legal Disputes
Value 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 on the factors that will yield the greatest impact over that shorter term.

Finally…

The value drivers - Your Plan / Reality

Your Plan / Reality

Telephone us if you require advice on maximising value prior to a company disposal.