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Business Owners: Where is Your Company’s Value?

Business Owners: Where is Your Company’s Value?

Property Aspects Magazine had the pleasure of interviewing Paul Dodgshon of Uscita. For over a decade, Paul and his business partner, Alexandra Dodgshon, have been helping business owners throughout the UK to grow their companies and get them fit for sale.

We wanted to learn about the valuable service that Paul and Alexandra offer company owners.

What Benefits Can Uscita Solutions Offer to Companies?

Our target market is typically companies that have between £1 million to £12 million turnover. Their key pains are that they are struggling to break through that glass ceiling to the ‘next level’ and really need somebody to help them understand how, in order to do this, they may need to build a better business model.

It’s really about building value into your company and by looking at it from a buyer’s point of view. Buyers will mainly be interested in the future profits of a company, so the key is to make your business model more sustainable.

As part of the overall job we do, we look at five simple elements that can add value to a company. This enables our clients to focus on what is important from a buyers’ perspective and it means we can really add benefit for them.

The five simple elements are:

  • future cash flows
  • levels of recurring income
  • their relationship with the company
  • how their staff are engaged within the company
  • their unique position in the market

The impact of these simple improvements means that, as and when the owner comes to sell their comapny, the sale price could be increased by as much as 71%.

In some cases this can have a significant impact on the subsequent timing and retirement lifestyle of the owners involved.

What Happens After You Have Improved the Value of a Business?

We seek to help owners take their businesses to the market for sale. We do this using the offices of Business Partnership. We’ve been part of Business Partnership for over ten years now, and it is one of the largest independent business brokers in the UK. Since 1978, they’ve been helping company owners sell their businesses of all types and sizes.

The key is that we try and sit down with the business owner to understand their goals, and set out to achieve those by guiding them through every stage of the process. This includes vetting buyers and doing early due diligence to make sure they don’t trip over their bootlaces at a later date.

This ensures not only that the right price is achieved but also the right structure, and from then on agreeing the right deal terms through to a successful completion. We know from experience that getting the terms right when agreeing the deal leads to a much higher completion rate within Business Partnership than it does within the rest of the market.

At the end, the business owner can step back from out of the business with their money, usually with a handshake and a smile, and hand it over to the new owner.

To find out how to add an average of 71% to the value of your business, please call Uscita on 01606 535 020.

Alternatively, they have produced a guide which outlines 8 key drivers that can improve the value of your business.  To download your copy of this guide, please click here.