As a business owner, you likely understand the importance of assessing and comparing your company to others in order to gauge its value. After all, knowing where you stand is essential to making sure your business is heading in the right direction. So how does your company compare? Let’s take a look at some of the basic value drivers.

Value Driver Low Medium High
Business Type Little Demand Some Demand High Demand
Business Growth Low Steady High & Steady
Market Share Small Steady Growth Large & Growing
Profits Unsteady Consistent Good & Steady
Management Under Staffed Okay Above Average
Financials Compiled Reviewed Audited
Customer Base Not Steady Fairly Steady Wide & Growing
Litigation Some Occasionally None in Years
Sales No Growth Some Growth Good Growth
Industry Trend Okay Some Growth Good Growth

As part of your overall exit strategy, it is essential to identify what you can do to improve your business and make it more attractive to buyers. By understanding the value drivers and how they impact your company, you can make the necessary changes to increase the value of your business and make it more appealing to potential buyers.

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