If you are planning on exiting your business, understanding the proper value of your company will go a long way in ensuring your financial stability.
In an article from WilmingtonBiz, author Dallas Romanowski writes, “Obtaining a proper professional business valuation is the first step in determining how much your company is worth, but what happens if the valuation shows that your business isn’t worth enough to allow you to exit your business with financial security? How can you increase your business’ value if everything that’s made it successful thus far isn’t enough?”.
In the article, Romanowski discusses:
What are value drivers?
What establishing value drives matters
Romanowski continues, “Growing business value and cash flow can help you close the gap between what your business is currently worth and what it must be worth to satisfy your exit goals. Thus, growing business value and cash flow is key to your ability to exit when you want and for the money you need”. Is your business valuation based off of value drivers? If not, it may be time to reconsider your business valuation.
To read more, see the full article from Dallas Romanowski in WilmingtonBiz.