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.