This is the definition of Growth Potential one of the eight key drivers acquirers care about when looking to buy a company.
So, a lot of business owners when they think about their business they want to value them what they’ve done in the past right we’re proud of what we’ve done in the past that’s normal, you know, the fact you won an Association Award for example or that you’ve got 20 years in business or that you’re recognized for your reliability, whatever it is that you think you’ve done in the past, and the hard truth of it is that when a buyer comes in, they’re not buying the past, they’re not buying what you’ve done.
They’re really only buying one thing and that is they’re buying your future stream of profits. What is this business going to do in the future for you it’s the end of the game, it’s the finish line but for them it’s the start. they want to know what can this business do in the future. You really want to make the case and focus on what is the future potential of this business, you know, can it operate in a different market let’s say you’ve been successful in one market, is it possible to scale to market B, C and D. Could you cross sell additional products and services to your existing customer base, are there ways that this could work in different cultural markets for example, think up all the ways that you could significantly scale up the business, the answer to those questions is going to drive up your growth potential.
Watch a video on all 8 of the key value drivers
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