When the owner of a plastic molding company decides it is time to sell and exit the business, there are generally two overriding questions:
How do I maximize the value of my business?
How can I attract an acquirer that is a great cultural fit - for my customers and my employees?
Maximizing value and attracting good buyers often go hand-in-hand. The key drivers that help you achieve these goals are probably etched in your brain already: profitability, sales growth, EBITDA margins, customer concentration, etc. Other drivers of value and investor interest include "curb appeal" (the organization and cleanliness of the facility), the degree of specialization and the existence of a strong non-shareholder management team.
But what else can impact business valuation when an owner is looking to exit? And just as important, what soft drivers help make the company attractive to a pool of larger and more sophisticated acquirers?
