CHAPTER 5

Components of Value

The term “value” is often associated with businesses that are in transition, usually through a sale, but improving value can drive performance improvement even when there is no plan for a sale, or if the potential sale is three to five years in the future. I have worked with some business owners who no longer enjoyed running their companies because of challenging circumstances, family issues, or just plain boredom; but when improving the company’s value led to significant performance improvement, the fun returned and they decided not to sell after all.

When owners do plan to sell, they find that buyers come in two types, strategic and financial, who are looking for different things but whose ultimate objective is ...

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