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.
· 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.
· Tired old companies often try to buy sex appeal through the acquisition of a trendy young company in their industry.
· 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.
· 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.
· 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.
See How CORE Strategic Business Solutions Can Help You Build and Protect The Value of Your Business
Click Here to See how your business scores on these Key Drivers