25 Mar Three final things that make your business more valuable than your industry peers
Your industry is a major factor in determining the value of your company. Nevertheless, there are major variations in valuation for companies in the same industry. By analyzing the data you can find at least ten things that will make your company more valuable than your industry peers. Here are three final things.
8. Clean Books
Companies that invest in audited statements have financials that are generally viewed by acquirers as more trustworthy and therefore worth more. You may want to get your books reviewed professionally each year even if you’re too small for audited statements or they are not customary in your industry.
9. A 2iC
Companies with a second-in-command who has agreed to stay on after the sale are more valuable than businesses where all the power and knowledge are in the hands of the owner.
10. Happy Customers
Being able to objectively demonstrate that your customers are happy and intend to re-purchase in the future will make your business more valuable than an industry peer that does not have a means of tracking customer satisfaction.
Like a rising tide that lifts all boats, your industry typically defines a range of multiples within which your business is likely to sell for; but whether you fall at the bottom or the top of the range comes down to factors that have nothing to do with what you do, but how you do it.