即使不出售也能提升企业价值的七大方式
The surest way for a business to reap the greatest benefits is to start managing enterprise value as early as possible. Before selling, there are some surefire ways business owners can protect and enhance the value of their business. Read on to explore seven areas where you can maximize business value.
Several Ways to Manage Enterprise Value
1. Implement sound financial reporting and control strategies
Prepare financial statements correctly to fully reflect the overall financial position of the company. Proper reporting should cover essential elements such as accounts receivable, revenue, profit, expenses, fixed assets, debt status, and cash management.
2. Maximize your competitive advantage
While this is more abstract than financial reporting, it is just as important to the company’s valuation. Competitive advantages may include patents, certifications, exclusive contracts, geographic reach, vertically integrated services, professional clients or employee talent.
3. Promote diversification of customer groups and reduce dependence on key customers
How do we respond if some key customers are in recession and need to cut back? Ideally, you can manage temporary sales dips by increasing your contacts with other existing customers (adding value), while also continually gaining new business from adjacent potential customers.
4. Expand your business with technology and equipment
Transformation with digital technology and equipment can increase production and profitability through the reduction of manual steps or automation. Lower labor costs through equipment and technology can also improve earnings before interest, taxes, depreciation, and amortization (EBITDA). Look for opportunities to capture data at source and then reuse it across all business systems. Conduct end-to-end product tracking to identify and minimize waste.
5. Improve key employee retention and develop young leaders
Potential buyers are looking for key employees to work with profitably. Consider pushing the company’s younger cohort into leadership positions and finding ways to motivate and retain top talent, such as management equity incentive plans or retention bonuses.
6. Increase cash flow and shorten capital turnover time
Cash flow requires simplification of invoice terms and schedules, reassessment of overhead costs and expenses. Some company principals withdraw cash directly from the company, thereby achieving the purpose of tax reduction and value-added investment. Other company leaders may not have access to the lines of credit that fuel the company’s growth.
7. Expand recurring revenue streams
Some companies (particularly in the professional services space) just go back and forth “get a job and do a job” while ignoring some recurring revenue opportunities. These companies can take the form of maintenance or supply contracts, managed service deals or licensing of brands, products or technologies.
Adopt an entrepreneurial mindset to drive growth and manage value
The advantages of these seven measures (or a reasonable combination of measures) are obvious, not only to ensure that employees get more paid through sales. It can also bring tangible benefits to employees by improving efficiency and profitability, so that employees can feel at ease and at ease. In addition, it can make employees’ work rewarding-they can do daily care and greeting some high-quality customers, so as to attract repeat customers.
In order to take control in your day-to-day leadership role, you may need to delegate some operational or technical roles to other members of the management team. This will help retain and motivate top talent and better capitalize on opportunities for growth and innovation. This can be a very challenging transition for those company leaders who run their businesses on their own merits. But the more successful you are, the more important these factors are for subsequent succession planning and ability to scale.
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Clayway LLP’s transaction services experts help companies in the industrial automation, construction and engineering, manufacturing and distribution industries manage their businesses today and tomorrow, and create greater value. We also specialize in succession planning, tax strategy and overall financial management. Contact us today to learn more.