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What Makes You Tough to Compete With? It’s that thing customers value but competitors can’t seem to match. For Apple, it’s their integrated ecosystem of devices and services. Apple’s ecosystem binds together iPhones, iPads, Macs, Apple Watches, and services like iCloud, Apple Music, and Apple Pay into a seamless experience. Once you own one Apple…
Have you ever wondered why some athletes struggle to transition from player to coach? This challenge isn’t just limited to sports; it’s a critical shift that many business owners need to make to build a valuable business. Take Wayne Gretzky, for example. Despite being arguably, the best hockey player of all time, he failed to…
When potential acquirers first evaluate your business, most will quickly categorize it into a specific industry. This initial classification can significantly impact the value they place on your business. Some industries are inherently perceived as more valuable than others, and if your business is placed in a less favorable category, it can be challenging to…
Who does the selling inside your business? If you’re involved, your business will be less valuable than if you weren’t. Investors and acquirers are reluctant to invest in a business where the owner is the rainmaker of the company. The team at the Value Builder System™ analyzed more than 70,000 businesses, and the data revealed…
Most founders aim to boost sales, but prioritizing top-line growth can attract low-quality revenue, potentially reducing your company’s value. To an acquirer, revenue quality varies. They prioritize future revenue predictability, valuing recurring income from contracts and subscriptions higher than one-off sales. Consequently, firms with recurring revenue often command a revenue-based valuation, whereas businesses reliant on…
We live in a business world where growth is worshipped. Entrepreneurs measure themselves by how many people they employ. Many founders dream about making lists whose sole criterion is revenue growth. However, if your endgame is to sell your business to a strategic acquirer one day, indiscriminate revenue growth may not result in a commensurate…
If you’re looking to attract an investor or an acquirer one day, expect them to dig into your sales and marketing process. If you’re a company that sells to other businesses, an investor will want to know where you get your leads from and how much each costs you to generate. They’ll want to know…
One of the eight factors that impact the value of your company is something the team at The Value Builder System™ refers to as “The Switzerland Structure,” which emphasizes the importance of business independence. It cautions against excessive reliance on any single entity, whether suppliers, employees, or customers. While many business owners recognize the risks…
Your portfolio managers are constantly analyzing the market to help them make the best investment decisions on your behalf. It’s important for you to feel comfortable with these decisions, so we’d like to offer you the opportunity to better understand the process that portfolio managers use to manage your investment portfolio. We hope that it…