How Customer Concentration Affects Business Valuation
How Customer Concentration Affects Business Valuation Customer concentration can be an issue when selling your business if any one client accounts for 15% or more of your company’s revenue. It can be a troubling situation to find yourself in because the fewer clients that contribute to your profitability, the greater the chance of losing a sizeable chunk of your income should...Read MoreSelling Your Business To A Financial Buyer vs. A Strategic Buyer
Whether you want to sell your business next year or a decade from now, you will have two basic options for an external sale: the financial or the strategic buyer. The Financial Buyer The financial buyer is buying the rights to your future profit stream, so the more profitable your business is expected to be, the more your company will be worth to them. Strategies that are key to driving up the...Read MoreWhat Makes Your Company Unique Increasing Value When Selling
There are unique attributes of a company that make it more attractive to a possible acquirer and/or more valuable. Certainly, the numbers are important, but potential buyers will also look beyond them. Factors that make your company special or unique can often not only make the difference in a possible sale or merger, but also can dramatically increase value. Review the following to see if...Read MoreQ3 2015 Sellability Score Tracker Results- How Sellable Is Your Business?
The 3rd quarter 2015 Sellability Tracker showcases survey results based on business’s completing The Sellability Score Survey, an interactive tool offering a comprehensive assessment of the “Sellability” of a business. Completing the Sellability questionnaire gives you an overall Sellability Score out of 100, plus your score on the eight key drivers of Sellability, which are statistically...Read MoreWhat Makes Up The Value Of A Business?
Many courts and the Internal Revenue Service have defined fair market value as: “The amount at which property would exchange between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having a reasonable knowledge of relevant facts.” You may have to read this several times to get the gist and depth of this definition. The problem with this...Read MoreFinancial Management for the Closely Held Business, presented by Tri Counties Bank
Tri Counties Bank locally in the central valley is presenting four 2-day Business Financial Management seminars in Grass Valley, Sacramento, Chico, and Redding in September and October. Here’s a brief summary and for more information on attending click here. “Businesses face tough challenges and unique opportunities. The financial success or failure of a business lies in its...Read MoreScale Up Your Service Business to Increase your Business’s Value
Increase the value of your company by training others in your area of expertise. It can be tough to grow a service business. Clients are typically buying your expertise, and if all you have to sell is time, the size of your business will always be limited by the number of hours in your day. One way to scale up your service business is to launch a training division to teach others what you...Read More
How Does Your Business Compare?
When considering the value of your company, there are basic value drivers. While it is difficult to place a specific value on them, one can take a look and make a “ballpark” judgment on each. How does your company look? Value Driver Low Medium High Business Type Little Demand Some Demand High Demand Business Growth Low Steady High & Steady Market Share Small Steady Growth...Read More
