Your Company Could Be Worth More Than You Think

 

Business owners across the lower and middle market typically understand their industries well. They also generally have a good grasp of how to sell and deliver their products and services. A good owner has a strong handle on his or her financials, but close proximity to the business often creates a disadvantage when it comes to looking at the business through the eyes of a strategic buyer.  Over the years managing the business, an owner may grow comfortable viewing the business through that business’ format and lens. This approach allows for an efficient review of financials and performance, but also can impede the ability to appreciate and recognize the full value of a business.

A strategic buyer by definition has a business valuation model that looks beyond the face value of financial statements and almost always beyond the stated net profit of the business. Strategic buyers are often more interested in finding ways to leverage your customer base, product and grow margins in another way.