What makes your company attractive to a buyer? The answer to this question is what the enterprise value specialists at Ceibass explore, re-explore and evolve every day.
“Fundamentally, what a buyer is looking for is predictability of revenue. What they are buying is future cash flows,” says Tom Fochtman, Ceibass CEO. “So the better your contract renewals, the better your management team, the better your company runs like a well-oiled machine, the more predictability, the more trust the buyer has in your business, the more attractive it is to them.”
Tom went on to add that the best companies create systems and procedures so that the company runs like a well-oiled machine, without the owner. This creates sustainability and value for the buyer.
“To make your company run like a well-oiled machine make sure you have systems and procedures for everything,” says Tom. “And I mean everything — productivity, operations, invoicing, receivables/payables, contract renewal, maintenance, sales, marketing, technology, leadership, strategy, recruiting, employee engagement, employee evaluation, accounting/cash, management and internal communicate. Things should be documented and systematized so that you can evolve and improve your company.”
Stay-tuned for future blogs where Tom shares key questions to ask for some of the more overlooked systems and procedures required for top performance.