Whether you’re planning to sell, merge, or simply want to understand your firm’s worth, knowing what drives value is essential.
In this week’s episode, we’ll explore the 5 biggest factors that buyers consider when determining just how high they’ll value your firm.
Listen below.
0:33 As you might know, I have firsthand experience in valuation — my firm was acquired in 2018, making it one of the early cloud accounting firm acquisitions.
1:19 The first and most crucial factor affecting your firm’s valuation is an obvious one: your firm’s financial statements.
1:39 The second key factor in your firm’s valuation is the quality of your team. Buyers want a business that isn’t dependent on the owner or partner.
2:04 Your business model is the third factor affecting your valuation.
2:32 The fourth factor comes down to how systematized your business operates. Buyers look for a business that runs smoothly and efficiently.
3:02 Lastly, having a strong marketing engine in place significantly impacts your firm’s valuation.
