Are you looking to enhance the value of your business? | DMA

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Are you looking to enhance the value of your business?

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Whether you're buying or selling, M&A transactions come with challenges.

Buyers often worry the business may underperform after acquisition, which can lead to reduced offers.
Sellers, meanwhile, are typically incentivised to grow the business post-deal and naturally want to maximise its value.

That’s why it’s in a seller’s best interest to make their business as robust and sustainable as possible before going to market.

But how do you assess the future sustainability of your business?

A strategic review can reveal whether your company represents a high-risk profile to buyers, and what steps you can take to strengthen its position and value.

What buyers see as red flags (and what drives valuations down):

Low profits (typically under 15% of revenue) suggest vulnerability to even minor disruptions.
Inconsistent trading performance and weak financial controls shake buyer confidence.
Overreliance on one client or narrow service offering increases risk.
Lack of differentiation without a clear edge, a business won’t stand out in a competitive market.
Weak second-tier management raises concerns about succession and scale.
Poor business development, depending solely on referrals or lacking a growth engine.

What sellers should highlight to increase value:

Clear differentiation - what makes your business unique? Buyers seek IP, strong client relationships, long-term contracts, and standout market positioning.
Consistent growth and healthy margins - signal a self-sufficient, resilient business.
Innovation and market leadership - being ahead of the curve boosts appeal and future-proofing.

"Tackling these factors doesn’t just boost your appeal to buyers, it also builds a stronger, more resilient, and better-performing business today."

Hear more from the DMA

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