Consider your exit strategy from the start.

It is good business discipline to consider every decision you make in terms of how it might impact the potential sale of the business.

Your revenue model

A potential acquirer will look for strong patterns in your revenue model.

It helps if you have regular customers that give you repeat business. They will be able to make assumptions based on this information that will help them to value of your business.

Cost commitments

They will also look to see if there are any cost savings that can be made. There may be costs duplicated when they combine the two companies in terms of staff, premises and suppliers and of course there is an opportunity value that can be attached to this.

On the other hand, long term contractual commitments to stay in a particular premises or being tied into using a particular supplier can have a negative impact on the valuation.

Reasons for acquisitions

There are lots of reasons why one company might wish to acquire another.

It could be to reduce competition in their market, it could be because they are good at winning business and need additional resource to service this new business.


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In the event that you do sell your business, Rhino will play a key role in their due diligence process.

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This article is based on our experience and does not constitute advice for any specific company. You are responsible for making your own independent investigation and appraisal of the risks, benefits, appropriateness and suitability of the material presented in this document and Rhino Software Limited is not making any recommendation(personal or otherwise) or giving any advice and will have no liability with respect thereto.