Assuming your business isn’t a financial basket case…
Here are 5 simple questions to determine how sellable your business might be:
🔹 ARE YOU UNIQUE? A strong USP is critical for a successful exit. Demonstrating a competitive advantage (like IP or people) makes your business more valuable.
🔹 ARE THERE HIGH BARRIERS TO ENTRY? The easier it is to copy what you do, the less valuable your business will be.
🔹 DO YOU HAVE SUFFICIENT SCALE? A critical mass of customers, or achieving adequate revenue will attract more potential buyers and investors.
🔹 IS THERE HOPE VALUE? This reflects the clear opportunity for a buyer to add value to your business post-acquisition.
🔹 DOES THE BUSINESS OPERATE INDEPENDENTLY OF ITS OWNERS? A business which is overly reliant on the owners, can be less appealing to buyers.
If you answered YES to most of these questions, your business likely has the fundamentals to attract buyers.
Of course, maximising your valuation will involve many more factors.
NO answers indicate areas to improve before you exit.
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