I’m pretty sure it’s worth less than you think…
Or at the very least, it’s worth less than you want it to be.
So a better question is → what do you want your business to be worth? And then reverse-engineer that exact outcome.
Sounds simple but it’s somewhat misunderstood.
You can increase the valuation of your business several ways. But it helps to understand a few basics.
If you’re calculating your company valuation based on a multiple of revenue or earnings – then be honest with yourself about the real current multiple – not your fantasy multiple.
Then put your energy into increasing the current multiple using proven methods. An obvious example is enabling your business to thrive without any owner intervention, but there are numerous others.
The other thing to mention is saleability. I don’t just mean being due-diligence ready. I’m talking about becoming highly desirable to potential aquirers. That’s definitely not some box-ticking exercise; it requires a deep understanding of how a buyer will value your business and what they value the most about your company.
And then there is growth. One thing I’ve noticed is that when we introduce a robust sales and marketing engine into a business, while it helps with boosting earnings, it also drastically improves the overall growth trajectory.
That results in a higher valuation but also makes the business much more saleable.
#NextLevelGrowth #M&A #Exitlaunchpad #SMEs #BusinessGrowth