Posts Categorized: Business Valuation

How Your Employees Can Boost Profits and Value

The simple fact is that without employees, you don’t have a business.  Given the tremendous importance of your employees, it is important to step back and reflect on the value associated with keeping those employees happy. There is a direct relationship between happy employees and happy customers.  A happy employee takes steps to ensure that… Read more »

From Broke To A $1B Sale

Tomas Gorny and his partner started a website hosting company called IPOWER in 2001 with nothing more than a credit card. Over the next six years, they built the business to $40M in revenue, which is when they merged with Endurance, a competitor. They ran the merged company, with Gorny as the largest individual shareholder, for four… Read more »

From 3x EBITDA To 13x EBITDA In Just 2 1/2 Years

Jeffrey Feldberg and Stephen Wells founded Embanet to help colleges take learning online.  Embanet provided hosting, tech support, course conversion, and then moved into helping universities and colleges fill the online programs.  Despite their unorthodox management style, Feldberg and Wells built Embanet to 200 employees in just 7 years. When they decided to exit, they had… Read more »

From Paper Sketches To $441M Sale

Tevya Finger, President and CEO of Luxury Brand Partners, wanted to start a luxury hair product company and quickly raised $6M in capital from investors to begin Oribe Hair Care. Before they could really get their products off the ground, the 2008 economic crisis hit and $2M of their start-up capital were frozen by the bank…. Read more »

How To Lure A Giant Like Facebook Into Buying Your Company

A great business is bought, not sold, so, if you look too eager to sell your business, you’ll be negotiating on the back foot and look desperate—a recipe for a bad exit.  But, what if you really want to sell? Maybe you’ve got a new idea for a business you want to start or your… Read more »

5 Reasons Why Now Might Be The Right Time To Sell

Are you trying to time the sale of your business so that you exit when both your business and the economy are peaking? While your objective to build your company’s value is admirable, here are five reasons why you may want to sell sooner than you might think: You May Be Choking Your Business When… Read more »

Similar Companies Can Have Huge Value Differences

Can two companies in the same industry have very different valuations? In short, the answer is a resounding, yes. Let’s take an example of two companies that both have an EBITDA of $6 million but with two very different values. In fact, Business One is valued at five times EBITDA, which prices it at $30… Read more »

Third Time’s A Charm: From False Starts To Finishing Big

Scott Miller grew Miller Restoration to a $3M business specializing in cleaning up the mess caused by floods and fires. When a new business idea caught his attention, Miller decided to sell his business. After two false starts, he ended up successfully selling for 3.5 times pre-tax profit. Miller knew telling his employees would be… Read more »

How To Avoid Disappointment When It’s Time To Cash Out

How do you avoid not being disappointed with the money you make from the sale of your company? Perhaps you’ve heard that companies like yours trade using an industry rule of thumb or that companies of your size sell within a specific range, and you want to get at least what your peers have received…. Read more »