The result of the GROW or GO survey designates that the owner and company are in Quadrant 3, indicating that the owner is ready to exit, but there are several factors in the company that need to be addressed in order to make the company sellable and to maximize the value of the company.
Questions and Answers on Quadrant 3
What Is The Likely Value Of My Company?
The value of a company is often inversely related to the amount of risk that would exist for a prospective buyer. The lower the risk, the higher the value.
So the value of a business is generally determined by the cash flow generated by the company times a multiple of earnings.
For some companies this value may be more determine by revenue than by earnings.
What Determines The Value Of My Business?
The actual value of a business can only be determined by going to market and determining what buyers are willing to pay.
How Do I Plan For Getting My Company Ready For Sale?
Preparing a company for sale involves careful planning and proper execution. This typically requires that the owner commit more time to this activity.
What Factors Can Be Addressed to Increase the Value of the Business?
- Increasing revenue and profits
- Reducing owner dependency
- Improving the quality and reliability of earnings
- Reducing risks that would exist for prospective buyers
Contact us and we’ll make every effort to accommodate your request!
What Are The Types of Buyers?
Although their are many potential sources of buyers, they typically are either financial or strategic buyers. The financial buyers determines value from the cash flow your business generates. A strategic buyer is also focused on how the acquisition of your company generates synergistic benefits between the buyer’s and the seller’s companies.
Who Should I Look To For Help In Preparing My Company For Sale?
Exit planners and Mergers and Acquisition advisors can provide valuable insight on how to increase the value of your business.