What are value drivers?
Finding value
Whether seeking to dispose of a non-core activity within a group, or planning to retire, or simply realise capital, the disposal of a business is likely to form the culmination of many years’ financial and managerial investment.
Such an investment will only be justified if you can realise the full value of your business. But what is value and where does this arise in your business?
Value drivers are the elements of your business that are of the most value to prospective buyers. They are main contributors to the sales and profits your business achieves and your growth. Value drivers may take the form of a range of exclusive products or services difficult for competitors to copy, or an enviable reputation in the industry or market, or a substantial market share in the regions in which you operate, etc.
There are many possible value drivers and one of our jobs will be to conduct a review of your business and help you identify the most important ones. These will help us find the type of buyers that will pay more for your business, and to make sure we present your business in the most effective way.
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