JIP Acquisition

Business Value in Plain Language

JIP Acquisition

Waarde About your business and preparation
As an entrepreneur, you’ve been working toward the moment when you can sell your business. But then, after years of working incredibly hard, the question arises: what is it actually worth? As an entrepreneur, you know your revenue down to the last euro. But what about the business itself? You may never have had time for that, let alone dared to dream about it.

The value of your business isn't something that only comes into play once you have a buyer. As experience shows, you don't create value in the last six months—you build it up over years.

So, preparing to sell your business begins long before a buyer approaches you. In addition to any tax deadlines you may need to take into account, you should plan on three to five years of thorough preparation. Why? It’s very simple: if you sell too quickly or don’t prepare enough, you’ll get less for your business. As an entrepreneur, this often includes your retirement savings or the money for the fun things you want to do afterward.

Your business’s performance
Waarde is no accident. It’s the sum of factors you can control yourself. How many customers you bring in. How long they stay. What you’re left with. How much money is tied up in inventory and outstanding invoices. And how dependent the business is on a single customer, a supplier, or on you yourself. All these factors influence the value of your business. Can you adjust these factors to optimize your profits? If so, you’ll see that reflected in the value of your business.

Example: Your business earns €300,000 per year before interest, taxes, and depreciation (EBITDA). A buyer multiplies that profit by a certain factor: the multiple. For example, if that multiple increases by 0.1 because you’re less dependent on that one major customer, your business is worth €30,000 more.

As you can see here, even a small adjustment to these controls can make a big difference in the value of your business.

Who are we?
We are Jet Jilderda-Ploegstra and Jaap Jan Regnery of JIPovername B.V. On paper, we are tax specialists with more than 15 and 20 years of experience, respectively. In addition, we have extensive experience in the acquisition and sale of businesses. In practice, we focus primarily on the numbers: on bookkeeping, financial statements, and the cash flows that run through them. Where does the money come from, where does it get stuck, and where does it leak away?

That’s exactly where the value of your business lies. Not in a single number, but in how money flows through your business and what you ultimately end up with.

How can we help you?
We provide you with insight into the value of your business, we can help you grow the value of your company, and we’re happy to assist you in realizing that value when you sell your business.

Would you like to learn more, sell a business, or acquire a business? Or would you prefer to talk first? Contact us to schedule a no-obligation introductory meeting.

Contacts

JIP Acquisition
  • 8 Kelvinstraat

    8912 BA Leeuwarden