BUSINESS OWNER
4 Traps To Avoid When Selling Your Company
Republished with permission from Built to Sell Inc. Business owners have been known to refer to due diligence as “the entrepreneur’s proctology exam.” It’s a crude analogy but a good representation of what it feels like when a stranger pokes, prods, and looks inside every inch of your business. Most professional acquirers will have a…
Subscribers Make Your Company More Valuable
Republished with permission from Built to Sell Inc. Why are Amazon, Apple and many of the most promising Silicon Valley start-ups leveraging a subscription business model? Subscribers not only provide steady revenue; they make your company more valuable in the eyes of an acquirer. In a traditional business, customers buy your product or service once…
Business Valuation
Republished with permission from Built to Sell Inc. Deck: Business valuation goes beyond simple mathematics, but to get some idea of what your business might be worth, consider the three methods below. Your business is likely your largest asset so it’s normal to want to know what it is worth. The problem is: business valuation…
What a Study of 14,000 Businesses Reveals About How You Should Not Be Spending Your Time
Republished with permission from Built to Sell Inc. In an analysis of more than 14,000 businesses, a new study finds the most valuable companies take a contrarian approach to the boss doing the selling. Who does the selling in your business? My guess is that when you’re personally involved in doing the selling, your business…
6 Reasons Not To Diversify
Republished with permission from Built to Sell Inc. Deck: Diversification is a sound financial planning strategy, but does it work for company building? How does Vitamix get away with charging $700 for a blender when reputable companies like Cuisinart and Breville make blenders for less than half the price? It’s because Vitamix does just one…
What’s so special about the million-dollar mark?
Republished with permission from Built to Sell Inc. If you’re wondering when is the right time to sell your business, you may want to wait until your company is generating $1 million in earnings before interest, taxes, depreciation, and amortization (EBITDA). What’s so special about the million-dollar mark? The million-dollar mark is a tipping point…
How To Get a Big Company Multiple For Your Business
Republished with permission from Built to Sell Inc. Big public companies trade at a significant premium over small businesses in the same industry because investors perceive big, sophisticated companies as a safer bet than small, owner-dependent companies. Let’s take a look at the professional services industry. Although most consultancies are a small collection of experts,…
One Hidden Thing That Drives Your Company’s Value
Republished with permission from Built to Sell Inc. You already know that your company’s revenue and profits play a big role in how much your business is worth. Do you also know the role cash flow plays in your valuation? Cash vs. Profits Cash flow is different than profits in that it measures the cash…