7 Factors of Outlier Value
Selling your company for maximum value is often the goal. Reaching the next level, outlier value requires concentrated effort.
It comes down to more than just having a good business and brand. They contribute, but there’s more.
Here are 7 factors that, when combined, can bring in higher offers when selling…
1 Predictable Profits
An acquirer wants to lower risk and ensure profits. Having 5+ years of sustained success frames the deal in the right light.
2 Tremendous Team
Buyers are placing more emphasis on the management team than ever before. They want to know your company can operate just as well, if not better, in your absence.
3 Fortified Financials
Professional reporting through a highly qualified CPA firm can make a difference. If your financials and bookkeeping cannot be defended well, it could provide an opportunity for the acquirer to retrade.
4 Driven Diversification
Customer, vendor, service, and product concentration issues lower value. Ex: Having a customer that’s 90% of your business is a high risk to most buyers.
5 Recurring Revenue
Having a subscription-based business helps #1 become even more predictable. Second, a business that has regular repeat customers can lend strength as well.
6 Gauged Growth
The steady, sustained growth of five years or more is a positive narrative for acquirers.
7 Strong Systems
Operational processes, marketing campaigns, hiring procedures, etc, that are documented and followed relentlessly help lower the risk for a buyer. It allows them to see the future as replicable instead of a question mark.
There are more possible factors of value, but those are the ones most frequently given combined consideration for outlier offers. Next steps…
CRI Capital Advisors represents family-owned and closely held companies. We can help you at any stage of the deal and certainly with a complete and competitive process.
If you would like to discover how much your company may sell for in today’s market, request a complimentary market assessment from CRI Capital Advisors.