Whether you want to sell your business next year or a decade from now, you will have two basic options for an external sale: the financial or the strategic buyer. The Financial Buyer The financial buyer is buying the rights to your future profit stream, so the more profitable your business is expected to be, the more your company will be worth to them. Strategies that are … [Read more...] about Why Bother Doing It The Hard Way
Making your business less dependent on you has a number of benefits: you can scale your company more quickly if you’re not acting as a bottleneck; you get more time to enjoy life outside of your business; and a business less dependent on its owner is much more valuable to an acquirer. Pulling yourself out of the day-to-day operations of your business is easier said than … [Read more...] about You-Proofing Your Business
Doctors in the developing world measure their progress not by the aggregate number of children who die in childbirth, but by the infant mortality rate – a ratio of the number of births to deaths. Similarly, baseball’s leadoff batters measure their “on-base percentage” – the number of times they get on base – as a percentage of the number of times they get the chance to … [Read more...] about Six Power Ratios To Start Tracking Now
Your age has a big impact on your attitude toward your business, and your feelings about one day getting out of it. For example, one person who runs a boutique mergers and acquisitions business refuses to take assignments from business owners over the age of 70. He has found that septuagenarians are so personally invested that they can rarely bring themselves to sell … [Read more...] about How Your Age Shapes Your Exit Plan
If you have considered selling your business of late, you may have been disappointed to see the offers a business like yours would garner from would-be acquirers. According to the latest analysis of some 20,000 business owners who have used The Value Builder System, the average offer being made by acquirers is just 3.7 times your pre-tax profit. Companies with less than a … [Read more...] about The Downside of Just Milking It
You've done the hard work of winning a new customer, but it's what you do in the next 90 days that determines if it'll stick around. The first 90 days of any new relationship are critical: A president has about three months to inspire the electorate and gain the political capital he needs to govern. A young team prospect has but a few months to impress his coach … [Read more...] about 90 Days That Will Define Your Business Forever
Becoming wealthy may not be your primary goal, but if it is, there is a reasonably predictable way to get rich in America. Step 1: Ignore Your Parents Parents around the world typically encourage their kids to get educated so they can get a ‘good job.’ This may mean becoming a doctor or lawyer, although neither tends to be a path to significant wealth. High-paying … [Read more...] about How to Get Rich in 3 (Really Difficult) Steps
August was a rollercoaster ride for stockholders. Triple digits wins followed by even larger losses left the average investor reeling and were a good reminder that markets move in both directions. Valuations of privately held business have also been somewhat turbulent of late. The average offer extended to users of The Value Builder System was 4.2 pretax profit in Q1, 2015, … [Read more...] about Did you miss the perfect time to sell your business?