In many ways, the experience of owning a business isn’t quantifiable. How do you measure the pride of signing your first big contract? What’s a sleepless night spent figuring out a challenging issue worth? How can you place a value on decades of relationship building with colleagues, clients, and business partners? The truth is you can’t.
Yet once you’ve made the decision to exit your business, potential buyers will be doing just that. Before going to market, it can be useful to get an understanding of the valuation process, how the market will assess the value of your business, and what you can do to increase it.
Our guide provides an overview of the valuation process, including key concepts and terms, and an overview of core value drivers.
Having a more thorough understanding of valuation will help prepare you for the exiting process and for negotiations once you have prospective buyers.
If you’re currently considering an exit, but want to better understand the process, we can help—contact your local advisor or reach out to us here.
