Buyers

How to increase the value of your company and get acquired at the price you want

Valuing your business for the first time is super exciting. Who doesn't love a pat on the back for all the hard work you've put into building and developing your business? You're probably also thinking about the acquisition right now, and this valuation will indicate how desirable your business is and how much you could potentially walk away with after the deal closes.

But what if your numbers are disappointing and your business isn't worth what you thought it was? You might feel disappointed, or worse, resentful of all that effort you put into it. Well, I'd like to reassure you: your valuation is not a tattoo that your company wakes up with and regrets for the rest of its life - it's flexible, and you can increase it with a few simple actions.

The key is not to let evaluations rule your life. They are part of the art, part of the science, and the market (what buyers can and are willing to pay) decides the final number. But if you want to know how to increase the value of your business, read on: What follows is a list of actions that will increase the value of your business by a factor limited only by your ability to do them.

Never valued your business before? Visit our accredited experts to get the lowdown.

  1. Increase revenue
    Relevant indicators: Annual Recurring Revenue (ARR), Monthly Recurring Revenue (MRR), "Churn" churn rate.
  2. Increase profits
    Relevant metrics: Customer Acquisition Cost (CAC), Lifetime Value of Customer (LTV), Churn.
  3. Reduce expenses
    Relevant indicators: Cash Flow, Expenses, Return on Investment of Expenses, Lifetime Value of Customer (LTV) and Customer Acquisition Cost (CAC).
  4. Acquire VIPs and Partnerships
    Considerations: Brand Equity, Distribution, KOL, Partnerships.
  5. Develop your intellectual property
    Considerations: Code base, Software licenses, Developer contracts, Bug reports, Support tickets.
  6. Acquire and delight your best customers
    Relevant metrics: Net Promoter Score (NPS), Lifetime Value of Customer (LTV), Churn.
    Considerations: Reviews, Testimonials, Case Studies, Customer Personas, Press.
  7. Communicate a unique vision
    Considerations: Vision and mission statements, Presentations, Brand story, Why you do business.
  8. Get expert advice
    Your business is unique and you need someone who can spend time learning all aspects of your business to give an accurate assessment of its value. If you're ready to take your valuation to the next level, hire a valuation specialist from our directory of M&A consultants.
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