One thing is for sure. If exiting your business is on the cards in the next couple of years, you want to achieve the highest valuation.
But if you leave your exit strategy to the last minute, you only have enough time for superficial changes to enhance your valuation.
Changes that often have no effect. Like using ‘accounting tricks’ to artificially inflate your valuation. These tactics fool no one and do not increase the underlying value of your business.
Because → beyond building a credible business, the value of your company is largely determined by what a buyer believes they can do with it.
Let that sink in for a moment.
If a buyer believes they can improve what you’ve already built, increase margins or scale to the next level, they are much more likely to pay a higher than average multiple to acquire you.
You MUST understand the motivation of this type of buyer way ahead of time. That will give you enough runway to optimise your business to maximise your valuation.
So if it’s acquiring your customer base that’s behind the buyer’s higher than average valuation, go and win more customers. Or if it’s your experienced and highly skilled personnel they want, strengthen your team even further!
If you’re serious about maximising your exit value in a few years, then get started now.
#NextLevelGrowth #ExitLaunchpad #Valuation