How Much Will Your Company Sell For?
– Understanding the Valuation Process

BY Basil Peters

Keynote from the Business Transitions Forum in Vancouver, BC.

Learn how to determine the price you’ll receive when you sell your company and what you can do to ensure the price is fair. This talk describes the market factors which affect the price and describes what you can do to maximize the final valuation.

Highlights from How Much Will Your Company Sell For?

  • About half of the people who sell their companies get less than the fair market value
  • I’ve seen companies sold for tens of millions less than they should have been
  • Many times the sellers don’t even realize they’ve left millions of dollars on the table
  • Selling your company is surprisingly different from other large value sales
  • The M&A market is extremely “inefficient”
  • The most important factors that will determine your price are the:
  • 1. Fundamentals of your business
  • 2. Current M&A market
  • 3. Quality of your exit team
  • Predictability is a very significant factor in every valuation
  • Many other factors affect valuation – for example, customer concentration
  • The video describes some of the ways sellers can maximize the price they’ll receive
  • I’ve seen a number of companies sold for 50% more than the sellers expected

The PowerPoint from this talk is online here.

This post has more on how to determine the value of your company.

Click here to attend the next Business Transitions Forum.