What is my business worth and how can I enhance it?

One of the questions we are frequently asked by clients, and the one with an answer that is both simple but complex.

The simple answer: “it’s what someone is prepared to pay for it”.

However, the reality of how that someone reaches “their valuation” can derive from a wide range of factors, which can be both nuanced and intricate.

For business owners who are seeking to enhance the value of their business, the first step is to realise how their business is valued. For example, understanding how a potential acquirer might review their financial (and non-financial) information allows them to take action to maximise the value drivers.

Often value growth comes hand in hand with business growth, which in turn requires investment. Recognising how a growth project can be funded is, therefore, crucial to ensure cash flow remains under control, and any investment in working capital doesn’t detract from the value of existing operations.

On the other side of understanding value enhancement is knowing what can detract from value. For example, what might cause a potential acquirer to reduce their value from an original offer (or walk away all together)? The answer can be found in the risks to the business and how these risks (perceived and real) can be mitigated and managed.

In essence it is about: Building, enhancing and protecting value in your business

To help business owners understand how to do this practically we are running a free interactive workshop, hosted by corporate finance, legal and funding professionals. Focussed around an interactive case study, the half-day has been designed to help business owners embark on the journey to enhancing the value of their business. The content will allow them:

1. To understand how their business is valued.
2. Determine the factors that affect value and consider actions they can take to improve it.
3. Understand how funding can be used to grow value; and finally
4. Identify key business risks that detract value and how these can be managed.