How does the sales trend over the last few years affect the value of my company?
The company’s growth record has become more important in the valuation process. Although the buyer is basically purchasing the accounts in place at closing and the personnel to run the accounts, the buyers are looking to the growth trend as important evidence of the abilities of the managers going to work for the buyers. This is why an owner should seriously consider selling when the revenues level off or the growth slows down. It’s an indication that the owner has reached a “glass ceiling” and the company starts losing value. Return to FAQs…
