In the past year, our company, Acceleration Partners, has been evaluating several potential acquisitions as part of our partnership with a private equity firm. Unfortunately, as we’ve connected with several first-time sellers in this process, it’s become clear that many founders don’t have an accurate sense of what their company is worth to a buyer.
Understanding Your Business’ Worth is Not Intuitive
Not knowing the accurate worth of a company is the position I found myself in many years ago before seeking advice from experienced owners who had been through the process. But, unfortunately, understanding your business’ worth is not intuitive.Many founders, unfortunately, end up emphasizing the wrong metrics, turning off prospective buyers’ interest, and losing focus on the business itself.
