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The marketability and value of a company is a compilation of a number of characteristics. Here are a few factors that generally lead to increased sale price:
- Growth rate and growth capacity
- Operating profits and profit trends
- Management quality and depth
- Niche, market position, brand awareness, and identity
- Multiple customer groups
- Proprietary products
- Customer retention and transferability
- Product cap or no cap mix and gross profit
- Replacement value of assets
- Overall reputation in the community and industry
- Quality of financial information
- Low risk
This list is not meant to be all-inclusive, but touches on some of the key financial areas of value and risk typically investigated and considered by middle market buyers. Experienced business sale consultants also know that companies are rarely sold strictly based on the numbers, but on the strategic fit with the buyer or other more subjective criteria. For a better understanding of your specific business value, click below for our:
COMPLIMENTARY Marketability Assessment and Preliminary Business Valuation
For a COMPLIMENTARY checklist of factors that enhance the value of your company, click here.
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