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Monitoring value is something that should be done in any economic environment. Ideally, business owners and their management teams should begin monitoring the value of their business at least five to seven years before considering an exit. Most assume valuation is a quantitative science focused solely on financial statements, forecasts, multiples, and rates of return. But, it is actually more qualitative in nature. https://www.burnsvaluationconsulting.com/key-driver-business-value/
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KEY DRIVERS OF A BUSINESS VALUATION
ABOUT US Monitoring value is something that should be done in any economic environment. Ideally, business owners and their management teams should begin monitoring the value of their business at least five to seven years before considering an exit. Most assume valuation is a quantitative science focused solely on financial statements, forecasts, multiples, and rates of return. But, it is actually more qualitative in nature. Business Valuation is a prophecy of future business expectations. To accurately reflect those expectations, it is critically important for a business owner to identify and understand what drives value? What factors increase cash flows and reduce risk? There are, quite frankly, hundreds of value drivers, some of which are industry-specific.
VALUE DRIVERS Value drivers such as reputation, patents, brand, organizational health and new products are all considered when placing a value on a company. These impact the expected future cash flows of the business and thus drive value. INCREASING VALUE ECONOMIES OF SCALE PRODUCT/ SERVICE OFFERING CUSTOMER BASE MARKET ENVIRONMENT MARKETING STRATEGY AND BRANDING FINANCIAL PERFORMANCE
THANK YOU If you’d like to learn more about value enhancing strategies including cost benchmarking and saving, you need a Business Valuation Expert w/ Strategic Planning experience. Burns valuation Consulting offers Exit Planning services to help business owners plan for the future. Simply call us today at 770-380-2406. https://www.burnsvaluationconsulting.com/