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5 Ways To Maximise Company Valuation

The following are some key steps that go into valuing your company and navigating through the acquisition process, giving you the confidence to stand over your forecasts.

Focus On Sales & Growth

Selling your company will be one of the most stressful, distracting things you will do in your career – a tedious, drawn out process can lead you to take your eye off the ball and lose sight of what is happening now, potentially adding power to buyers should there be a sudden dip in revenue. 

Before preparing for acquisition, it’s worth taking a deeper look at your NTM (Next Twelve Months) revenue so you know what the year ahead will look like. As the saying goes, ‘measure twice, cut once‘ – there’s no reason not to trust the data coming up from your sales team, but at such a crucial time, it is advisable to have a system in place that provides an unbiased view of the next twelve months, allowing you to remove human bias and course-correct against future blockers should it be needed before entering a due diligence process.  

Prove Recurring Revenue

Providing evidence of a recurring revenue model proves a healthy relationship between your company and existing customer base. Loyal customers committed to ARR or MRR places confidence to potential acquirers that your company requires less time and resources generating new business each financial year, reducing the risk involved with forecasting revenue – having your customers on a recurring revenue model can maximise your profitability.

With the confidence of recurring revenue, your company can focus more time on attracting an ICP and nurturing them along a clearly developed and optimised sales funnel.

With Planr in place, you can expose hidden growth blockers and identify opportunities to implement impactful changes right down your sales funnel to individual sales rep level.

How Planr helps:

Maximise Your EBITDA

A company’s financial value hinges on its profits and a model of its future cash flows. It is becoming more and more common for acquisitions to be conducted on a debt-free cash-free basis. As such, potential buyers will look to your EBITDA (Earnings before interest, tax, depreciation and amortisation) as a key benchmark for your company’s profitability and will then take a multiple of this.

Using advanced logic as well as sales components like ARR, Non-RR, Previous Revenue Performance, New Sales, and Sales Capacity vs. Values Next Year to accurately project future revenue and EBITDA.

How Planr helps:

Find Hidden Blockers

Take a critical look at your EBITDA – is this is your best case scenario or could you improve margins by making some strategic changes across your organisation, prior to starting an acquisition process. For example, are there inhibitors to revenue or sales bookings as a result an inefficient sales process, lack of capacity or pipeline blockages?

Using our pre-built playbooks, you can get a detailed view of sales team capacity and performance across quarters so you can optimise for growth.

How Planr helps:

Plan For The Long Term

For high-growth companies going through acquisition or raising funds, long-term planning is vital to secure the best possible future for the business and your new investors. 

Getting your tech stack in order as early as possible will set you up for long-term success – having all systems aligned top-down and bottom-up gives leadership teams across all divisions accurate, impactful data, giving stakeholders the confidence to make long-term strategic decisions.

The key to any corporate performance management system is the ability to integrate with other enterprise systems. Planr has pre-built integrations to a large number of systems such as Salesforce, Slack and Xero among others.

How Planr helps:

Learn How You Can Maximise Your Company Valuation With Planr

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How TDS used Planr To Increase Their Valuation By 33%

Read the TDS success story to learn how they saved time and money by presenting accurate and intelligent data fast