M & A SERIES
How to Drive Your Business Value Ahead of a Sale
Knowing the value of a business — and understanding how to increase that value — is key to maximizing your purchase price when it is time to sell . Further , focusing on value drivers and industry trends over time can also help you run your business more efficiently . But what value drivers should be considered , and why ? To increase value , owners must understand how hypothetical buyers would perceive their business operations .
The M & A advisors at Doeren Mayhew Capital Advisors provide the following key factors buyers look for when valuing a business :
• Profits and Cash Flow Investors prefer companies with high profitability , positive operating cash flows and consistent growth patterns , especially relative to the industry and their competitors .
• Longstanding and Diverse Customers or Clients Companies not tied to one or two key customers and / or with customers across multiple industries are more
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