As trusted business advisors we should be able to discuss the subject of “value-creation” on a high level with our clients. The following tips and tricks are selected for you and your clients interest to increase the (strategic) value of the company (source Brookz.nl).
Which buttons can a business owner run to substantially increase the value of a company? Centralizing value-creation is the key word.
- Scalable products
If a product or service can’t be scaled, grow will almost become impossible. Make sure a product or service is highly valued and can be delivered in time.
Business models based on subscriptions experience an enormous growth over the last years. Subscription economy has proven itself by many advantages; stabile and returning income.
- Make yourself redundant
In the lifecycle of every company, delegation will become more important than being in control of everything.
- Motivation of managers
Making a business owner redundant (point 3) can only happen if a solid management is ready to take over. Investors need the security the company will not implode after the founder leaves.
- Exit strategy
Lifecycles of companies become shorter and shorter. Merger waves follow each other rapidly. A solid exit strategy should be leading in the owner’s strategy and needs to be in place undersigned by the time the right wave passes his path.
If you or your client consider a (strategic) takeover or establishment in the Netherlands or you would like to discuss Corporate Finance issues, please feel free to contact us! For further information regarding our core business we refer to our website www.jmcorporatefinance.nl/uk.
Jan van Wijngaarden, Partner
Bart Koreman, Senior Advisor