How to Boost the Value of Your Business

A company is worth what a buyer perceives. Time-tested ways to increase the value of yours include adding new sales channels and locking in strategic alliances

All too often banks, potential investors, and creditors will determine a company's value based on financial statements. This is a mistake. Financials don't come close to telling the true story. Sure, they present the tangible value. But what about the intangible value? Company valuation is emotional—a company is worth what an acquirer will pay, what the market will pay, what the interested parties perceive. We see evidence of this frequently when companies with a trickle of revenue are acquired for gushing millions or even billions of dollars.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.