How to increase the value of your company

It's essential to accurately value of your business - when selling; you'll be clear about the value you expect to get from a buyer. If you're looking for investment, an investor will look positively on your business if you have provided an accurate valuation.

The higher the value of your company the more sellable and easier it will be to bring in investors

To maximise the value of your company you should focus on strengthening the factors of your business listed below:

 

Finance  

  • Historical and project profit
  • Cash flow and costs
  • State of the economy

Competitors 

  • How much are your competitors (of a similar size )worth?

Patents or intellectual property ownership

Loyal customers and strength of brand

Value of assets and debt

Strength of staff teams

Reputation and brand name

Marketing activity

 

Reaching an accurate valuation

To reach an accurate valuation of your company there are a number of methods you can use:

  1. Asset valuation
  2. Multiple of profits
  3. Entry valuation
  4. Rule of thumb
  5. Discounted Cashflow

 

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