Naturally, businesses evolve and eventually every business will transition to a future generation whether it’s to managers, family, an outside buyer, or shifting between partners. It’s good to be curious even if you’re only just considering some type of transition. Exploring your business’ value from the eyes of an investor or a buyer can provide a new way of looking at your business opportunities.
Business value can be broken down into 5 different categories, one financial and four non-financial areas.
The strength and reliability of the numbers.
The diversification of customers and strength of the sales force.
Infrastructure and the ability to deliver.
Reliance on the owner and overall strength of the leadership.
Growth, margin, integration and expansion.