Business Succession or Exit

Sellability Driver 1 of 8: Financial Performance

Sellability-Driver-1-of-8--Financial-Performance
The first driver speaks of identifying your top line and bottom line revenue. It is identifying the quality of reporting those numbers, investing in audit, so numbers would be as defendable as your business is.

Video Transcript:

To build the sellability score, we built a quantitative marker research with business owners. We discovered that there is this 8 key drivers that drive the sellability of the company.

The first one is an easy one. It’s easy to understand, it’s actually very difficult to deliver. It’s your financial performance. it’s made up of what’s your top line revenue, what’s your bottom line profit and interesting about financial performance is that a second hidden element to it is not only what those numbers are but the quality of the reporting of those numbers. So to drive up your score, do not only focus on your top line or bottom line but also consider investing in an audit. Or some way to make sure that those numbers are as defendable as you can because the buyers are gonna come in and say “great, you got these numbers but how defendable are they and what third party has come in to scrutinise these?” Investing in an audit is one simple way to improve your score in financial performance.

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