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.
|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|
|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.