December 2017
The owners of privately held companies are often focused on generating cash flow to drive a higher value for their companies. At the same time, there are non-financial factors that business owners can address to enhance the value of their company.
Although a business owner may not see a direct impact on cash flow (in comparison to revenue growth or a cost-cutting strategy), these non-financial factors could impact the risk to the company’s cash flow, which in turn impacts its value. In simple terms, the lower the risk associated with an investment in a company, the higher the value (and vice versa).
