When considering the value of your company, there are basic value drivers. While it is difficult to place a specific value on them, they give the company a competitive advantage in the market. What are your company’s key value drivers?

Value DriverLowMediumHigh
Business TypeLittle DemandSome DemandHigh Demand
Business GrowthLowSteadyHigh & Steady
Market ShareSmallSteady GrowthLarge & Growing
ProfitsUnsteadyConsistentGood & Steady
ManagementUnder StaffedOkayAbove Average
FinancialsCompiledReviewedAudited
Customer BaseNot SteadyFairly SteadyWide & Growing
LitigationSomeOccasionallyNone in Years
SalesNo GrowthSome GrowthGood Growth
Industry TrendOkaySome GrowthGood Growth

The possible value drivers are endless, but a close look at the ones above should give you some idea of where your business stands. Don’t compare against businesses in general, but specifically consider the competition.

It is important for a business owner to identify and understand the value drivers of their company. They give the company a competitive advantage which makes it extremely appealing to a potential buyer.

As part of your exit strategy, what can you do to improve your company?

AUTHOR: EBIT Associates, Ltd.
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