1. Stable and growing historical EBITDA trends
EBITDA is one of the key numbers investors focus on in valuation. You often hear the company sold for (pick your number here) times EBITDA. Stable upward trends in your company EBITDA is viewed as a very positive characteristic in finance and company valuation. Generally speaking, growth trends of greater than 10% (this number varies by industry) are considered “GOOD”.
2. A diversified customer base
A company with a large number of small customers is highly valued. Investors value a “diversified” base of customers. Large customers that represent a large percentage of annual revenue can be considered “risky” to investors. Why? If you lose this customer, and your financial results drop, the value also decreases.
3. A strong management team in place
The quality and skill of your employees, and management specifically, is a tangible factor in company valuation. If you have really good people, you are paid more for it.Signals of strong management can include: clean and honest book keeping records, reasonable projected growth and a clear strategy regarding factors that will contribute to the future growth