Value Enhancement Strategies
Sophisticated business buyers consider a number of factors in their evaluation of a company. Next Plateau, an ORBA subsidiary, has identified more than 50 important factors that buyers need to consider when determining the value of a particular company. These factors are divided into personal, business operations, industry, legal/regulatory, financial and the current economic/M&A market. Each factor should be rated as an area of strength, an area of potential improvement, or as neutral with no major effect on the value of the company. The company can then focus on highlighting strengths and mitigating weaknesses.
Value enhancement involves all aspects of a business, including facilities, production and personnel, as well as financial performance. It focuses on improving the profitability and cash flow of the business, mitigating the risks involved in business ownership and making the business an “excellent” performer in its industry.