Top 20 Destroyers of Business Value Tips – Summary

Posted on April 18, 2013 · Posted in Blog

bell curve2

We hope you have enjoyed our tips on the Top 20 Destroyers of Business Value. These tips are by no means a complete list, but rather a list of common items that decrease business value.

The far right of the bell curve represents companies that sell for a higher than average valuation based on a multiple of earnings.  Outside investors and prospective buyers will identify  the risks and items that decrease value and set their valuations accordingly. To receive a higher than average valuation, you must understand where the business currently falls along the bell curve and take the necessary  steps  to improve the drivers of value.

If you would like to review any of the past Top 20 Destroyers of Business Value Tips, please click on the links below.

  1. You
  2. No Recurring, Consistent Revenue
  3. Highly Concentrated Customer Base
  4. A Poor Online Presence
  5. Lack of a Clear Vision and Direction
  6. Not Maintaining Good Records
  7. Dependence on Key Employees without Non-Compete Agreements
  8. Increased Competition and Supply of Businesses on the Market
  9. Not Keeping up with a Changing World…Are you a Modern Day Dinosaur?
  10. Not Understanding Financial Ratios and Relative Performance
  11. Sometimes It’s Ok to Pay Taxes!
  12. Losing the Eye of the Tiger: Entrepreneurial Burnout
  13. Not Understanding Tax Consequences
  14. Not Understanding an Outside Investors Viewpoint
  15. Assignability of Contracts
  16. Unaligned Partners / Shareholders
  17. Not Optimizing the Use of Capital
  18. Not Understanding Business and Economic Cycles
  19. Not Protecting your Intellectual Property
  20. Over Reliance on a Single or Major Supplier

Are you destroying your business’ value by overlooking significant risk factors that may be associated with your business?

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