When considering building value, we first will ask, “What do you, as the owner, need to do to create a successful company that can operate without you?” Topics include developing a market focus, creating a top management team, and adopting a proper financial focus and corresponding policies.
Second, we ask, “Which characteristics will buyers pay handsomely for?” We call these characteristics Value Drivers, and they include (but aren’t limited to) the following:
A stable and motivated management team.
Operating systems that improve cash flow sustainability.
Understanding and nurturing the company’s competitive advantage.
A solid and diversified customer base.
A realistic growth strategy.
Effective financial controls.
Good and improving cash flow.