The answer from many private company owners is, “I don’t know if I could sell my company, that’s up to the buyers”. Our suggestion is that you could greatly build the future value, or worth, of your company by giving this question further thought.
Why? Because having an idea, even a general idea, could help you make more effective and worth creating strategic decisions in the years ahead of an exit.
Ask yourself – Is our future acquirer one that will likely:
- Place the greatest value on our products/services versus our facilities or infrastructure, so we therefore should focus and prioritize our investments in this area?
- Be drawn to our product/service fulfillment capacity to help expand their own so therefore our investment focus should be in this area of our business?
- Want our technology/process expertise primarily and would see high value in our infrastructure or facilities?
- Want to remove our business as a competitor from the market and our focus therefore should be more on customer market share capture?
There are more possible scenarios, but as you consider this overarching question, it could help you in making key business decisions over the years. We’d all like to invest equally across all areas of our business but limited capital can inhibit this. Giving this question strategic thought can help you fine tune your strategic plan and help increase the likelihood of experiencing a future euphoric exit event.
