How Much Is Your Business Worth?

The Exit Launchpad™
1 min readJun 14, 2024

--

How Much Is Your Business Worth?

I’m pretty sure it’s worth less than you think…

Or at the very least, it’s worth less than you want it to be.

So a better question is — what do you want your business to be worth? And then reverse-engineer that exact outcome.

Sounds simple but it’s somewhat misunderstood.

You can increase your business valuation several ways. But understand a few basics:

If calculating company valuation based on a revenue or earnings multiple — be honest about the real current multiple, not a fantasy multiple.

Then focus energy on increasing that multiple using proven methods. An obvious example is enabling thriving without owner intervention, but numerous others exist.

The other thing is saleability. I don’t just mean being due-diligence ready. I’m talking about becoming highly desirable to potential acquirers. That’s not a box-ticking exercise; it requires deeply understanding how a buyer values your business and what they value most.

And then there’s growth. When we introduce a robust sales and marketing engine, while it helps boost earnings, it also drastically improves the overall growth trajectory.

That results in a higher valuation but also makes the business much more saleable.

#NextLevelGrowth #M&A #ExitLaunchpad #SMEs #BusinessGrowth

--

--