Expertise

June 28th, 2010

Have you ever wondered how your business might look through the eyes of a potential buyer?

 

Sam’s “Business Value Audits” are more than just a straight forward Business Valuation; they are for forward thinking business owners who want to know exactly how their company will stack up when they go to market.  

Most business owners don’t realize that the most important part of the deal often happens years before the actual deal itself!  There are so many small decisions that we make today that will have a huge effect on the ultimate selling price of the company down the road.  Unfortunately, many business owners are shocked to learn that some of these decisions actually hurt the value significantly and can’t believe they didn’t see it coming.

So why is it that most business owners never even think about how to best position their company for a future sale?

The answer is that most business owners are simply busy doing what they do best.  They are running their business from day to day, maximizing sales and keeping an eye on profits.  Unfortunately, most business owners wait until the minute they are ready to sell to find out how much their business is worth.  Then they are shocked to learn that the value is far less than they had anticipated and many are forced to re-think their exit strategy.

That’s where Sam comes in.

Sam performs a quick audit of your company through the eyes of a prospective buyer. He analyzes all of the major components of your business just as a prospective buyer would ultimately judge the company.

These audits focus on:

  • Top Line Sales (historical trends, marketing engine, growth areas)
  • Bottom Line Profit (historical profit margins, variable & fixed operating expenses, capital improvements)
  • Operations (Procedures & Systems, Staff, Facilities)
  • Market (Competitive analysis, Products & Services, Industry Trends)
  • Business Health (Customers, concentration, other risk factors)
  • Valuation Assessment (Comparable transactions, current value metrics, future value methodologies)

At the conclusion of the Business Value Audit, you will be equipped with the following:

  • A Current Valuation of where the business stands today
  • Information and strategies to help you operate the business with a focus on always increasing its value
  • Quick Fix strategies that will instantly increase the value of your business 
  • Best Practices and recommendations for long term considerations as you grow

Since a current valuation assessment of the business is performed as part of the engagement, you will have a clear understanding of the value of your business today and more importantly, you will understand the methodology that buyers will likely use to place a value on your business when the time finally comes to sell.

If you would like to discuss having a Business Value Audit performed on your company, Contact Sam.

Comments are closed.
11339