Saturday, April 28, 2012

Two Crucial Risk Factors Reduce Your Business Value

Two Crucial Risk Factors Reduce Your Business Value: "Business Buyers want to buy a system for making money that they perceive as having a high likelihood of making more money for them under their ownership.
The business buyer's perception of risk and therefore their confidence in the likelihood of your business making money for them under their ownership is affected by Lack of Transferability and Excessive Concentration.

Lack of Transferability Risk
Will your business work for the Buyer after you are gone?
·        Marketing.  Marketing for new prospective customers or selling opportunities may occur because of your country club or service club membership or other relationships. This is great for you but lacks transferability to a buyer. Business values are increased when there are marketing programs that can be turned on or off by you or a new owner."

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