How to Value your Business in these Turbulent Times?

The last few weeks have shown us that valuations can be volatile, and timing is so important when exiting your business. Stock markets fell precipitously wiping Trillions off the value of Companies in the leisure, hospitality and consumer/retail goods.   In contrast companies in the health sector are seeing unprecedented turnover – so there are always opportunities in the face of market turbulence.

If you had thoughts of exiting before the virus attacked the world it may now be the time to ensure that you will be ready to take advantage of the next up-turn and have your business in a much stronger saleable position before the herd returns to the market.

Regent Assay has identified the following key areas that need attention, documentation and thorough processes to ensure that your Company can attract bids that are higher than the industry multiple when the time is right to go back to the market. These are considered “Growth Drivers”.  Our Valuation Algorithm takes these into account when valuing your business. Use the time under lock-down for strategic thinking and forward planning.

1. People and Organisation. Your people are your greatest asset and you will need them once the turmoil is over but take time to review incentives, career progression and even you own succession plan. If possible, try to furlough rather than make redundancies of good people. Your staff will value this highly and you will have a better motivated team with a better culture and values when you hit the throttle after lock-down.
2. Routes to Market. Evaluate all your current market channels and strategic partners – are they correct and do they fit your philosophy and ethos of both your company and your product or service. People have learnt that working from home is now a viable option for running businesses and this may become a permanent option for many. Can you develop or open channels that will take advantage of the changing dynamics that we are witnessing?
3. Products and IP. Analyse whether your products will still be relevant and in demand once the world returns to some form of normality. Should you be developing new products that will be more relevant to the new normal. People will probably be travelling less,  and working more flexibly (both physically and work patterns) – are you ready to adapt?
4. Positioning. Can you position your products or services to reflect the new social memes that have developed during lock down? Are you sending the right message to your loyal customers and being cognisant of the changes that they may also have to implement? Do you offer a solution to their problem?
5. Scalability. The whole world has experienced the same situation as the UK, will your product/service be relevant globally and what would it take to market and implement new manufacturing techniques and sites to take advantage of a much larger marketplace.

Addressing these simple strategies now will make your Company more valuable and attractive to future buyers.

Give us a call or drop us an email and we can discuss this more fully and help you get ready for the post lock-down marketplace.