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logologologo
  • Home
  • About
    • Our Process
    • Why I wrote the book on Being a Business Broker
    • Who is Ed Legum?
    • Getting Started
    • Careers
  • Selling
    • Seller Registration
    • How To Sell Your Business
    • Valuation
    • Industries
    • Download Free Whitepaper
    • Financing the Deal
    • Seller FAQ
    • Sellers Blog
  • Buying
    • Buyer Registration
    • How To Buy A Business
    • Financing the Deal
    • Buyer FAQ
    • Buyers Blog
  • Contact
  • Home
  • About
    • Our Process
    • Why I wrote the book on Being a Business Broker
    • Who is Ed Legum?
    • Getting Started
    • Careers
  • Selling
    • Seller Registration
    • How To Sell Your Business
    • Valuation
    • Industries
    • Download Free Whitepaper
    • Financing the Deal
    • Seller FAQ
    • Sellers Blog
  • Buying
    • Buyer Registration
    • How To Buy A Business
    • Financing the Deal
    • Buyer FAQ
    • Buyers Blog
  • Contact
June 27, 2012 by Edmond Legum Selling a Business 0 comments

How Does Your Company Rate?

Valuation of private companies is much more subjective than public companies because there is no free trading marketplace for the private companies’ stock.  Just like a champion Olympic figure skater, the performance has to be flawless.  Take a look at the following check list – see if the target company rates near perfect (on a scale of 1 to 10 – 10 being best):

• Stable Market
• Stability of Earnings Historically
• Realized Cost Savings After Purchase
• No Significant Capital Expenditures Herewith
• No Significant Competitive Threats
• No Significant Alternative Technologies
• Large Market Potential
• Reasonable Market Position
• Broad-based Distribution Channels
• Synergy Between Buyer and Seller
• Sound Management Willing To Remain
• Product Diversity
• Wide Customer Base
• Non-dependency on Few Supplier

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