Financial Performance

“Cash flow is king.” Everything you have worked for boils down to how much cash flow your business generates year-over-year on a predictable basis. A predictable pattern will command a premium price when selling because it reduces the perceived risk for a buyer. The lower the risk of losing cash flow in a transfer of ownership, the higher the value.

Beyond stability, the cash flow from your business needs to be substantial enough to attract a buyer and be in proportion with industry norms. The absolute value of your cash flow should cross a certain threshold to entice buyers and allow them to withstand market fluctuations.