How Does Your Company Rate?

The valuation of private companies is much more subjective than public companies because there is no free trading marketplace for private companies’ stock.  Just like a champion Olympic figure skater, the performance has to be flawless.  Take a look at the following checklist – 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 the 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

For more such Information, visit IBBA Canada.

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