In this podcast Vincent talks about how owners can make their companies more attractive and salable, highlighting the three factors he considers to be most important.
Currently the #1 reason owners exit their businesses is retirement, and the average owner has 60-90% of his net worth wrapped up in his business. For those owners it’s imperative that they get good offers when their companies go on the market. If they do not, their standard of living will significantly decline post-retirement.
When we at Prometis Partners work with clients, we help them identify value drivers, areas that they can target to improve management and communication as well as increase cash flow and profitability. We also discuss with our clients how they can de-risk their businesses and remove any factors that pull them down or make them vulnerable to either internal or external conflicts. It’s always a goal to strengthen businesses so that they are as recession proof as possible. Owners can’t control the economy or the ability of buyers to get financing, but they can diversify their product lines or add to the services they offer.
Business competitiveness is also very important. How strong is your business as compared to local and national competitors in your industry? How does your company stand out? If your goal is to sell your company for top dollar, you will need to let buyers know why your company is better than the competition.