Maximising Company Value: Eight Key Drivers and Risks

Summary:

In this video, Kerry outlines the eight key drivers that significantly influence a company’s value, as well as the major risks that prospective buyers assess to determine the business’s worth. Emphasising the importance of minimising risk for increasing value, Kerry categorises the drivers into five key areas: business, customers, future planning, financial metrics, and strategic considerations for selling the business.

She stresses that creating certainty and sustainability is crucial for reducing risk, as higher risks correspond to lower business value, while lower risks contribute to higher value. The video serves as a valuable guide for entrepreneurs looking to enhance their company’s overall worth.

Transcript:

There are the eight key drivers of company value and these are the major risks that a buyer will look to determine value.

These are: your business, your customers, thinking ahead in terms of the future, looking at your numbers, facts and figures, and what you need to do to be able to sell your business.  So, certainty and sustainability is what an investor or buyer will be looking for at a future time. If you can create certainty and create sustainability, you’re going to lower the risk. The higher the risk, the lower the value. The lower the risk, the higher the value.

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