Mitigate Risks To Maximize The Value Of Your Company.
The most ideal business sales strategy is implemented years prior to the business being put up for sale. This provides ample time for the necessary changes to be implemented and the results to be realized. The staff at MIBS understands the process of how to maximize the value of a company. With nearly 20 years of experience identifying risks, we approach maximizing the value of companies by first mitigating their risk. To understand how to maximize the value of a business, we first must identify what will make the business less attractive. We analyze several factors that make a company much more risky, translating to less potential buyers and a lower purchasing price.
Company valuations can be adversely impacted by financial factors and organizational factors. Financial factors include poor financial records and financial record keeping, a concentration of customers, a lack of reinvestment in repairing and replacing assets and unpredictable cash flow. Organizational factors include a lack of systems, a reliance on key people, poor reputation across customers, suppliers and vendors and a reluctance to invest in research and development. Companies with these traits have inherently more risk and command lower sales prices.
Even if your company suffers from some of the negative traits, changes can be implemented to yield immediate results. Financial factors can be addressed through meticulous work and capital budgeting. Organizational items are easier to address because they are typically internally controlled. Implementing systems, developing employees and strengthening external relationships take time and effort but yield substantial benefits. Also, steps can be taken to mitigate risks even if they cannot be easily addressed. For instance, customer concentrations can be mitigated through implementing contracts, diversifying within the customer by working with multiple buyers and divisions and strengthening the relationship with that customer so that they absolutely need your products and services.
Buyers buy companies for opportunity. They want to buy a solid foundation that they can build from. MIBS knows how to build that foundation through risk reduction and maximizing profitability. Through our process of listen, analyze and implement, we significantly increase the price buyers are willing to pay for our customer’s business.
Contact Us To Implement A Tactical Plan To Maximize Enterprise Value