Value Creation Strategies for Improving Company Infrastructure in Advance of Selling a Business
Journal Name: Value Examiner
Issue: November/December 2024
Publish Date: December 10, 2024
Authors: Kipp A. Krukowski, Colorado State University (http://orcid.org/0000-0002-0993-3566)
Abstract: The Value Examiner (November/December 2024): All business acquirer types—whether private equity groups, individual buyers, synergistic buyers, or industry buyers—evaluate a company’s core attributes, or the ‘DNA,’ before proceeding with an acquisition. Business infrastructure, one of the four foundational elements of a business model alongside offerings, customer relationships, and financial viability, includes key activities, resources, and partnerships that enable a business to deliver its value proposition effectively. Key activities encompass essential tasks that drive the business model; key resources are critical assets; and key partners are alliances or providers essential to sustaining the value proposition. The unique combination of infrastructure components can make a business an appealing acquisition target or present red flags to a potential acquirer. If the business model suffers from unaddressed deficiencies, a small business owner may suffer from a failed entrepreneurial exit. This qualitative analysis involved coding responses from 50 seasoned certified business intermediaries and exit advisors, with a median of 15 years of experience advising small business owners on company transitions. This study captures insights on strategies to enhance firm value, cataloging techniques to strengthen business model infrastructures in advance of selling a company.
Keywords: selling a business, M&A, exit planning, business consulting, business for sale, entrepreneurial exit, business model
PDF: Value Creation Strategies for Improving Company Infrastructure in Advance of Selling a Business
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This article (or a version of it) originally appeared in The Value Examiner, 2024 November/December issue, published by the National Association of Certified Valuators and Analysts® (NACVA®). All Rights Reserved. To learn more, please visit www.NACVA.com/ValueExaminer.
This article is being made available for educational purposes.