Value creating elements | RSM Corporate Finance

This is best viewed from the perspective of the potential acquirer.

In any circumstance, it is the acquirer who will decide which elements are predominant in determining a specific (additional) prize.

The recurring parameters are:

Strong EBITDA

Demonstrating year after year that the operational result (EBITDA) is at least stable and preferably rising, gives great comfort to the potential buyer. This makes future results to a certain extent predictable.

Excess cash position

It is with the surplus cash, that the business generates every year, that the acquirer can reimburse the investment. The higher the annual excess cash position, the higher the acquisition price can be.

Niche activity

What are your unique selling arguments? How do you make the difference with competitors? The more unique your position, the more value your company will have in the eyes of an acquirer.

Growth potential

An acquirer is focused on the future. The stronger you can demonstrate, through business plans, future projections of the sector,... that your activity has a future, the more candidates will present themselves as potential buyers. The more candidates, the higher your company will be rated.

Team of experts

A company based on a competent team has a strong asset. It does not necessarily create a direct added value on the price of the company. But a "one man show" pushes the value of the company down anyway.

Operational efficiency

Documented and streamlined processes, certifications, powerful tools, ... contribute to a strong image. This is certainly perceived as positive by an acquirer, who will take it into account in the pricing process.

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