Financials alone don’t tell the whole story.
When preparing to sell or attract investment, most business owners focus obsessively on the balance sheet and P&L.
Yes that’s important, but thinking like an accountant can blind you to the full picture of your company’s value, that isn’t captured in financial statements.
Here are 7 areas beyond the balance sheet, but attractive to buyers:
🟩 Latent IP. Proprietary methods, unique processes, systems and IP which deliver results, but reside off the balance sheet.
🟩 Geographic expansion potential. If you’ve only tapped a fraction of your total addressable market, your growth trajectory will be attractive.
🟩 Brand Equity. Loyal customers are prized by acquirers, along with reputation, awards, media coverage and engagement.
🟩 Human Capital. Skills, experience and leadership capability within your team, which isn’t included in the financials.
🟩 Digital assets. Not all over your assets will necessarily be included in the financials, such as domain authority, email lists or social media following.
🟩 Sales Pipeline. Strong near-term prospects and future growth runways.
🟩 Supply chain relationships. Valuable supplier partnerships and robust supply chains bring advantages to the buyer.
Anything that confers sustainable competitive advantage – but isn’t captured financially – can be a driver of additional value.
By creating less tangible assets, we can build an irresistible case that compels buyers to pay well above typical valuations.
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