What’s My Business Really Worth?

May 23, 2019

Do you know what your business is really worth? How do you weigh your expectations against where the value of your business actually, objectively, stands in the market? The truth, as discussed in our conversation with Cary Potter of Deal Valuation, is that making conclusions about the valuation of your business is a process of negotiation and perspective.


It is crucial to know the value of your company as the economy increases and expands, as well as when it declines and contracts. As an entrepreneur, step back and ensure that the love of your business is not getting in the way of your strategic outlook in terms of your brand’s position in the marketplace at large.

 

Your team is a key piece of the valuation equation, a crucial component in determining the true worth of your company. When a company is purchased, whether or not the team remains through that ownership transition is a key consideration, as oftentimes the team contributes greatly to the business’s overall valuation. What role did your team play in building the organizational infrastructure, etc? What impact will a merger or acquisition have on your team and the value of your organizational culture? Will your team be absorbed into another organization through the transition, or preserved in its value?

A change to your team and its structure could cause massive disruption to the nature of your business. Investing in a management team is often a huge piece of buying a company, so it is important to keep these considerations in mind. When you ruin culture, you can destroy business as well.


Finally, know your valuation story. Objectively explore where your business stands in the market and take decisive action to increase your brand’s value. When you know your valuation story, talking to your customers and potential buyers about the business becomes much simpler, and much more impactful.

For more insight on this topic and much more, listen to my recent interview with Cary Potter of Deal Valuation on my radio show, Business Growth Cafe, here:

 

 

https://businessgrowthcafe.podbean.com/e/selling-your-business-planning-to-exit-wondering-what-your-business-is-worth/

 

Photo by Pixabay on Pexels

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