What adds value to a business from the buyer’s viewpoint? What takes away from value? Here’s a list of each.
Value Enhancers
- Trained, stable work force
- Established, creative management team
- Product/service with a clear competitive advantage
- Stable revenues and profits
- Clearly defined goals – corporate focus
- Expanding markets
- Opportunity for significant productivity increases
- Well-maintained plant and equipment
- Effective management information systems
- Barriers to market entry
Value Detractors
- Low morale and high employee turnover
- Dominant, autocratic leadership
- Highly competitive product/service lacking differentiation
- Volatile revenues and profits
- Lack of a cohesive business strategy
- Stagnant or declining markets
- Limited productivity enhancement potential
- Poorly maintained physical plant
- Lack of management information
- Ease of market entry