Does the business supply a niche market?
If the product offering has a high price of market admission; technical expertise, skilled labor force, manufacturing economies of scale, or a strong customer base, then the business may have more value. Sometimes the least expensive and quickest way to expand into a market segment is to pay a premium for a business. · Is there a professional management team in place? The owner should ask himself, “If tomorrow, I am unable to participate in the business, would the people in place be able to run it, grow it and provide income to the stakeholders in my life?” If the answer is no, consider building that key group of management leaders to secure the business. Even in these times, people need to be working on the business and not just in it. This reduces risk and brings value to the stakeholders, whether they will be the family, employees or an acquisition partner. · Can the business be divided, divested in sub-units? As suppliers have grown product offerings to satisfy customer demands, so
