PREPARING TO SELL
KEY ATTRIBUTES OF DRIVING
For Appraisal Firms, it’s important to consider the key
base their valuation on. Not surprisingly, the
acquirers with the strongest understanding and
vision for the company are usually the ones that
26 | APPRAISAL BUZZ FALL 2019
If you’re large enough to be acquired, there’s a
decent chance you’ve already given it some thought.
If you’re not large enough to be acquired, but have
an attractive solution and company, it’s prudent to
explore ways to monetize some or all of your
equity interest in a market that is experiencing
historic transformation and above average M&A
The ability to demonstrate year-over-year revenue growth provides acquirers
revenue. The type of revenue is also important. Acquirers will recognize the
them as a tool to determine performance. In addition to revenue growth,
acquirers will pay careful attention to EBITDA margins.
OPERATIONAL AND SCALABLE TECHNOLOGY
Acquirers look for companies that can increase sales and expand their products
MINIMAL CUSTOMER CONCENTRATION
It’s vital to have a diverse customer base and even more valuable to have no
single customer generate 25% or more of the company’s overall revenue.