Your Business Value Increases
When There’s a Good Fit
The first step in valuing a business is exploring the profitability of the business, taking into account the risk. The less risk there is perceived in the business, the more the bidder for your business will be willing to multiply your profitability to form an offer for your company.
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.
By introducing competition, some will be prepared to up their offers to try to secure your business. They will tend to pay a premium not just because of the profitability, but also the economies and new revenue opportunities it may add to their existing interests. And also because they may not want to miss out.
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.