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How do you find hidden value in your business?

By Generational Equity

hidden value in your business

We are familiar with the term EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization). Some believe that using a multiple of this figure is the best way to establish the value of your business. However, while this is certainly one method to determine your company’s value, we would recommend using a range of valuation techniques to confirm the optimal value of your business.

Our Managing Director of Mergers & Acquisitions at Generational Equity, Terry Mackin, has highlighted other measures that can increase the value of your business:

"There are numerous reasons that one potential buyer is willing to pay significantly more for a business than another," said Mackin. "Identifying the underlying value of a business (often termed the off-balance sheet assets) is a key part of the pre-sale offering process that is often overlooked."

Here are just a few examples of where hidden value can be found in your business (a.k.a intangible assets):

  • Long-term favorable real estate leases/ownership
  • Recurring revenue
  • Strong customer relationships
  • Overcoming high barriers to entry
  • Equipment that is amortized
  • Important employees

For more information about how you can find the hidden value in your business, read our recent press release on PR Newswire.

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Robert Evans, President and CEO of Mealtracker Dietary Software
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Andy Graham, Vice President, Modern Heating & Plumbing
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Bil MacLeslie, CEO, ipHouse
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Terry D. Wickman, President, Keytroller
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Karen S. Williams, CFO, BW Manufacturing
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Larry Moore, Owner, A Company Portable Restrooms
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Karen S. Williams, CFO, BW Manufacturing
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Bil MacLeslie, CEO, ipHouse
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Michael J Polarek, President, Paragon Packaging
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Terry D. Wickman, President, Keytroller
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Rick Nowak, President/CEO, Kurz Electric Solutions, Inc.
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Jay Dinnison, Owner of Sharpe Mixers
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Jay Dinnison, Owner of Sharpe Mixers
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Bil MacLeslie, CEO, ipHouse
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Pete L.
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Andy Graham, Vice President, Modern Heating & Plumbing
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Rick Nowak, President/CEO, Kurz Electric Solutions, Inc.
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Robert Evans, President and CEO of Mealtracker Dietary Software
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Michael J Polarek, President, Paragon Packaging
We knew it would be a difficult task to have someone really understand our business and our market, prior to researching a possible buyer, so it was imperative that we found someone of your caliber, with definite proven experience in this area.
Rick Nowak, President/CEO, Kurz Electric Solutions, Inc.
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Larry Moore, Owner, A Company Portable Restrooms