Navigating Opportunity and Unlocking Value
When discussing value, there can be a wide range, in this post, I share my thoughts on business valuation. Valuation, in its simplest form, is a function of risk and cash flows.
You’ve heard the line, “When the time is right, will you be ready?” As a business owner, maximizing the sales price of your company may be the most important process that you undertake.
In its most simplistic form, value is a function of risk and cash flows. Higher risk factors translate into lower enterprise value. Therefore, you are able to maximize value by reducing risk.
You’ve worked hard to build your business and now it’s time to let go. You’ve heard anecdotally that your business should sell between 1.5 to 2.0 times revenues. You start getting excited about enjoying retirement.