Understand How to Increase Business Value. Spoiler, it is not All About Earnings
Presenter
Lisa Cribben,
Partner,
Hawkins Ash CPAs, LLP
Overview
Most business owners are looking to grow their company and eventually sell for the highest value. They may direct their focus on top line revenue, or earnings, as they believe that will grow the value of their business faster. However, growth in revenue and earnings doesn't always increase the financial worth of an organization. Understanding what drives the value of a company, other than earnings, is key to increasing the value of your business when it is ready for sale.
Learning Objectives:
- Discuss the different ways to look at the value of a business (Income, Market, Cost approaches)
- Identify what drives higher multiples when businesses sell
- Identify how to decrease the key metrics in increasing value (growth, risk, and earnings)