Thinking About Exit Strategies: Do You Know What Your Business is Worth?
If you’re thinking about selling your business, you need to know the strategic value of your company to potential buyers. Do you know what your tangible and intangible assets are worth? And if you do, how can you increase the strategic value of your business?
An article on SmartCompany.com, Exit Strategies: Identifying Strategic Value, provides some tips to help business owners who are thinking about exiting their business. The article defines strategic assets as “those things which a business has which can eliminate threats or provide opportunities for the buyer,” such as:
- Intellectual property (patents, trademarks, brands)
- Customer base
- Distribution channel
- Technology or a technical process
- Documented or codified knowledge
- Agreements or contracts
- Physical property, equipment, and inventory
- Locations
- Advisors, directors, managers, and employees
- Access to specific institutions and organizations
- Licenses, membership status, and authorizations
- Social, government, or business networks
Understanding the value such tangible assets have can help you better understand how to value your business overall. It can help you to think more strategically about your exit. Do you want to sell your tangible assets separately? Or, should they be sold as part of the business? Getting trusted professional advice on the value of your assets and/or a business valuation can help to ensure that you make the right decisions for you and your business.
Present Value LLC is a worldwide international appraisal and advisory company that provides a range of professional services such as Certified Machinery and Equipment Appraisals, Inventory Appraisals, Asset Verification Services, Business Valuations, and Real Estate Appraisals. Contact us today!
By: Present Value
Additional Reading