You have worked hard and built up a successful and profitable business. Have you ever wondered how much it is worth?
Do you know how much you need to sell your business for to achieve your desired lifestyle in retirement? It has been estimated that over the next 10 years there will be more than 400,000 privately owned businesses for sale. This is going to make for an extremely competitive sales environment. Having a clear understanding of the value of your business should play a critical role in the establishment of an exit strategy. It is something that should be considered well before you come to the decision to sell.
Every business has its own set of value drivers. What are some of the things that make a business attractive to a purchaser?
- Profitability – good margins, a strong balance sheet and an ability to generate positive cash flow
- Barriers to Entry – protection of market position and protected IP
- No Owner Reliance
If you, as an owner, can focus on the value drivers of your business you are better able to view your business from the perspective of an investor. A valuation will also help highlight areas of your business that need improving.
At Silvan Ridge we can:
- Provide you with an independent valuation of your business using an in-depth valuation methodology
- Determine for you what your business needs to be worth at retirement
- Provide suggestions on how to improve your business
We believe that a business valuation should be more than just determining a price at a point in time. It can be used to highlight weaknesses in your business. It can be used to implement change within your business. It can also be used to provide motivation to you as a business owner.
For more information please contact David Patterson for a no obligation discussion regarding the value of your business.