Business value

10 Things That Make Your Business More Valuable

Mar 30, 2018

10 Things That Make Your Business More Valuable

Than that of

YOUR INDUSTRY PEERS

1.     RECURRING REVENUE

·      The more revenue you have from automatically recurring contracts or subscriptions, the more valuable your business will be to a buyer.

2.     SOMETHING DIFFERENT

·      Companies with a unique product or service that is difficult for a competitor to knock off, are more valuable than a company that sells the same commodity as everyone else in their industry.

3.     GROWTH

·      Acquirers looking to fuel their top line revenue growth through acquisition, will pay a premium for your business if it is growing much faster than you industry overall.

4.     CACHE’

·      Tired old companies often try to buy sex appeal through the acquisition of a trendy young company in their industry.

5.     LOCATION

·      If you have a great location with a natural physical characteristics that a difficult to replicate, you’ll have buyers who understand your industry interested in your location, as well as your business.

6.     DEVERSITY

·      Ensure no one customer amounts to more that 10 percent of you revenue and your company will be more valuable than an industry peer with just a few big customers.

7.     PREDICTABILITY

·      If you’ve mastered a way to win customers and have documented your sale funnel, with a predictable set of conversion rates, your secret customer-acquiring formula will make your business more valuable to an acquirer.  

8.     CLEAN BOOKS

·      Companies that invest in audited statements have financials that are generally viewed by acquirers as more trustworthy and therefore worth more.

9.     A 2iC

·      Companies with a second-in-command who has agreed to stay on post sale are more valuable than businesses where all the power and knowledge are in the hands of the owner.

10.    Evangelist Customers

·      Being able to objectively demonstrate that your customers are happy, loyal and not only will re-purchase from you, but are actively referring other customers, will make your business more valuable.   

 

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