The easiest way to increase the value of your business is to decrease its risks to potential acquirers. You may be familiar with a method of the market approach to value that multiplies business cash flows by a "market multiple" to estimate the value of a business. While this is a bit of an oversimplification, it neatly demonstrates a point. There are two ways to increase the value of your business:
Changing the multiplier is oftentimes the simpler of the two tasks. However, most business owners lack the experience of dealing with potential acquirers to properly understand how risk is assessed in a transaction and as result, what is changes are required to increase their multiple. Until now!
Our value maximization report opines to both the current value of your business and the maximum potential value of your business based upon an assessment of risk and a comparison to your industry peers. Once armed with this information you can make an informed decision of whether or not it makes sense to exit your business now or retain the business, make the suggested changes, and increase the value of your business prior to exit.
Value drivers are defined as the parts of your business that create value. In most instances, 80% of the improvement in value for any business is contained within 20% of the value drivers.
In addition to opinioning to a current and maximum value for your business, our value maximization report identifies the specific value drivers of your buisness that upon improvement will result in the highest increase in value for your business. This is invaluable information that will allow you to work smarter in not harder as you grow the value of your largest asset.
To learn more about our value maximization reports, please complete the contact box to the right and one our value maximization professionals will contact you to discuss your business in more detail. All inquiries are held in the strictest confidence.
River’s Edge Alliance Group is proud to have served the following clients: