If you’re like a lot of entrepreneurs, you use your Profit & Loss statement as your report card at the end of the year. You may even use your P&L to figure out what your company is worth by applying a multiple to your profit. But, having worked with more than 20,000 entrepreneurs, John Warrillow has seen examples of companies that fetch up to three times more than the average price for companies in their industry. Likewise, he’s seen cases where companies are worth less than half the average multiple of their peer group.
Why would one company be worth two or three times more than a similar company in the same industry?
John has discovered that there are eight factors that actually impact your company’s value more than the industry you’re in.
Increase your score on each of the eight drivers of company value
Maximize your company’s overall value
Find strategic buyers for your business
Structure your business to maximize its value
Boost your company’s cash flow
John Warrillow, writer at Built to Sell