Monthly Archives: July 2014

Factor 5: Contributing to Your Company’s Sellability Recurring Revenue

One of the biggest factors in determining the value of your company is the extent to which an acquirer can see where your sales will come from in the future. If you´re in a business that must start from scratch each month, the value of your company will be lower than if you can pinpoint Read More

Factor 4: Contributing to Your Company’s Sellability The Valuation See-saw

The Valuation See-saw reflects the impact your cash flow and profitability have on the value of your company. Imagine a playground see-saw that can move in only two directions: when one end goes down, the other must go up. The same is true of the value of your company as it relates to your cash Read More

Factor 3: Contributing to Your Company’s Sellability The Switzerland Structure

A business´s sellability requires that the business not be overly reliant on any one customer, employee or supplier. The name ‘The Switzerland Structure’ was inspired by Switzerland´s focus on neutrality. The country has not declared a state of war since 1847 (it never entered the World Wars or the Iraq war), opted out of joining Read More

Factor 2: Contributing to Your Company’s Sellability Growth Potential

Acquirers typically pay the most for businesses with the potential to grow. In rare cases, an acquiring company may even buy a business that scores high on Growth Potential but low on other attributes, because the acquirer sees a way to leverage some of its own assets to help the business grow much more quickly Read More

Factor 1 Contributing to Your Company’s Sellability: Financial Performance

Specifically, the size of your turnover along with your past and expected profitability. A financial acquirer sees buying a business as paying today for a stream of profits in the future, which is why companies are generally bought and sold using a multiple of earnings. But focusing on your multiple is a little bit like Read More