Understand How the Market Sees You

Did you know that it’s entirely possible to build a company that is incredibly valuable to you as the owner but that no one wants to buy?  True.

Imagine for a minute that you run a thriving aerospace manufacturing plant that throws off a few million a year in earnings – and has for the last decade.  Sounds great, right? What if that same company has only one customer? I ran into a version of this company recently – the owner lived a lavish lifestyle, employees were happy, and their single customer seemed pretty pleased with their performance. The only problem? No one is buying that company – at least not without a massive discount on the price.

We call this concept of how the market looks at an asset – Market Attractiveness. Attractiveness encompasses many factors – margins, overreliance on an owner, single points of failure such as customer concentration, and many others.

Related: You probably don’t know the actual value of your company. 

Value Scout starts to quantify these issues when we run the Market Attractiveness Indicator, giving you a road map for building a company that is not just profitable to you as the owner but Attractive (read: higher valued) for potential buyers.
New call-to-action

Author Summary

Dan Doran

Dan Doran

Is the Founder of Value Scout, Quantive and the 2019 Exit Planner of the Year. He is a recognized expert and speaks frequently about M&A, valuations, and developing more deliberate value creation strategies.
Explore By Topic
Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
Filter by Categories
Exit Planning
Ownership Transition
Practice Management
Product Updates
Value Creation
Value Engineering
Winning The Work

Stay up to date with monthly blog highlights.

This field is for validation purposes and should be left unchanged.

Related Posts