Registration is now open for the IBBA Canada Annual Conference. Tickets available here.
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.