For the most part, the value of a business is based on its financial performance.
Yet very many businesses with mediocre to downright poor numbers sell for very solid sums.
Because there’s an equally – if not more – important factor than money that makes a business attractive to prospective acquirers.
Before I share what this factor is, let’s be clear what we mean when we talk about financial performance.
We are talking about profits – both on a historically demonstrated basis, and with the “high assurance” of even more profits in the future.
Truly profitable companies are the the “belles” of the business dance, effortlessly attracting suitors of all types…growth capital, owner liquidity, unsolicited buyout offers and the like.
For everyone else, there is a lot of self-improvement and “prettying up” work to do.
The self-improvement spans across every business aspect of – the gritty details of marketing, sales, and operational, and financial competencies.
And the prettying up is as comprehensive a need too – company culture, talent development, and the élan with which a business team works and fights together to overcome adversity and win.
As a business grapples and makes slow and steady progress with both, transformation happens.
It hits upon those golden ideas, those awesome projects, the brilliant new hires, and the new business lines so exciting in their potential that…
…what starts to develop is that lovely asset that creates multi-million and multi-billion dollar offers for companies with not much more than business plans and histories of operating losses.
The asset of the promise of a business.
The promise that its future will be brighter than its “mediocre-to-poor” past and present.
This promise can sometimes be – in the midst of the day-to-day struggle – hard to find, feel, and communicate.
But through the practice of ongoing business innovation and improvement…
…inevitably it can and will be found.
And when it is…it’s far more valuable than profits in the here and now.
Is the Financial Performance of Your Business All it Could Be?
Are you generating the kinds of real profits that effortlessly attract business suitors of all types – growth capital, owner liquidity, unsolicited buyout offers?
If so, great and congratulations!
If not, and thus you need help in identifying and making happen the needed changes at your company to better communicate its great promise then…
…complete this short questionnaire and give us a brief description of your current situation.
And we’ll reach out with our thoughts to help you.