Your Business Value Increases
When There’s a Good Fit
The first level of valuing a business’s value is around the profitability of the business. It’s a simple balancing act between profitability and risk. The less risk there is seen in the business, the more the bidder for your business will be willing to pay as a multiple of profitability.
For one moment, let’s assume that a baseline valuation is similar for all serious buyers looking at your business. Once they have reviewed your financials, asked a few searching questions and are considering making an offer, they will all have a similar figure in mind based on what EBITDA your company makes.
Then, with a layer of competition, some will be prepared to up their offers to try to secure your business. Not significantly, because most will still be looking at your business in terms of return on investment, taking into account external risk factors.
HOW DO YOU GET
PAID A PREMIUM?
The buyers who pay a premium are the ones persuaded by the added value you bring.
They stop looking at your business from the outside, not just as a revenue stream, but as one that also brings synergies, relationships and capabilities they do not have themselves. That is the ‘penny drop’ moment.
Our rigorous process reaches not just the buyers who will make offers, but the ones who care about your company. Not only will they pay you a premium, but you’ll be left in the most capable hands.