When you sell your company one day, acquirer’s will assess your competitive moat
Ask yourself this question – will your team be taking steps this year that will build, or at least protect, any competitive moat your company has?
The next obvious question is, does your company have a moat – a moat is the gap in the market between what you offer your customers and what competitors offer them. Does your company offer customers a product or service that is perceived as better than your competition? If yes, then you have a moat and you want to know what specifically your company is doing that built this moat and how to protect or build upon it. And if you identify you don’t have a competitive moat, then this is your year to build one.
A company owner or CEO’s job is to build the value, or worth, of their company. When you consider selling one day, acquirer’s will come in and kick your tires to determine if there is or isn’t a competitive moat. Be able to show them you have a competitive moat (that enables your revenue and margin growth), then you have a high worth business that could solicit very attractive offers. Start a new dialog with your leadership team today – what’s our competitive moat and what steps should we take this year to build or protect it?
