Common Business Value Drivers

What causes a business to sell quickly and receive a premium price from buyers ? The answer to this question are business characteristics called value drivers. The value drivers buyers look for that are common to all businesses are:

  • A diversified and growing customer base.
  • Quality management team and sales force.
  • Skilled and experienced employee workforce.
  • Well maintained facilities and equipment.
  • Good reputation in both the industry and community.
  • Documented business systems,procedures, and policies followed by management.
  • Accurate and reliable financial and business records.
  • Consistent revenue growth and positive cash flow.

Business owners who place themselves in the shoes of a potential buyer and work to develop the business value drivers will increase the value of their business. When they are ready to sell, they will be in a position to ask a premium price.

Should you need business valuation assistance or have questions, please call one of our credentialed professionals at (615) 822-8342 or contact us via email.