Wire Harness Business & Strategy

by: Loren M. Smith, CEO – Blue Valley Capital LLC
Valuation is, of course, the crux of the sale process, and within the valuation are two sometimes
overlooked essentials: a detailed forecast and a detailed path to growth. Achieving clarity on
these two related points boosts the seller’s possibilities and lifts the comfort level of the buyer.
Sellers who invest time and effort in developing a precise forecast for their business are doing
themselves a favor because a focus of the buyer’s due diligence process is assessing downside
risk. And assessment of downside risk can be described as determining the probability of future
performance being equal to or greater than past performance, which makes a comprehensive
forecast critical. Read full article in digital edition