Posts Categorized: Business Valuation

The One Number Owners Need to Stop Focusing On

The value of your business comes down to a single equation: what multiple of your profit is an acquirer willing to pay for your company? profit × multiple = value Most owners believe the best way to improve the value of their company is to make more profit – so, they find ways to sell more… Read more »

How to Leverage Your Strengths in a Business Exit

When preparing for a large-scale event—such as an extended trip to a foreign country, sending the kids to college, or preparing your business for the future—the planning required can sometimes look too big and unwieldy to pursue. Planning for the future of your business might be one of the largest-scale financial events of your life,… Read more »

Farm Succession Planning

from JDSpra.com (November 16, 2018) A huge number of baby boomers have created or continued successful family-owned farms. As they approach retirement the future of those farms hinges on their ability to successfully transition to a next generation. Less than 30 percent of family farms successfully transfer to a subsequent generation. A clear succession plan… Read more »

What Sellers Don’t Expect When Selling Their Companies

In the proverbial “perfect world,” business owners would plan three to five years ahead to sell their companies. But, as one industry expert has suggested, business owners very seldom plan to sell; rather, selling is “event driven.” Partner disputes, divorce, burn-out, health, and new competition are examples of events that can force the sale of… Read more »

Planning Your Exit Strategy Should Begin on Day One

Pepperjam CTO, Greg Shepard recently published “Planning Your Exit Should Begin When You Launch” in Entrepreneur magazine. In this article, Shepard puts forward a variety of thought-provoking ideas including that entrepreneurs should be thinking about partnering early on with those they believe will ultimately want to buy their business. Thinking Ahead Much of Shepard’s thinking… Read more »

4 Big Exits, 1 Smart Entrepreneur

Earlier this year, Steve Murch sold BigOven, a cooking app with over 13 million downloads and more than 4 million members, to Aisle Ahead, Inc., capping off an incredible run of successes: Former Chairman of the Board, Escapia, Inc. (http://www.escapia.com), a leader in vacation rental software, sold to vacation rental leader HomeAway (NASDAQ: AWAY) in… Read more »

Evaluating Your Company’s Weaknesses

The time you spend evaluating your company’s weaknesses is, as it turns out, one of the single best investments you can hope to make. No one should understand your company better than you. But to fully understand your company, it is essential that you invest the time to understand your company’s various strengths and weakness…. Read more »

5 Key Factors in Transferring Your Business to a Family Member

The odds are that you’ve put a great deal of yourself into your business. Inevitably, the day will come when you have no choice but to walk away from your business and begin a new chapter of your life. Quite often, businesses are transferred from one family member to another. In this article, we will… Read more »

This Grasshopper Has Learned Well

David Hauser and his business partner founded Grasshopper in 2004. The company offers a virtual phone system for entrepreneurs, targeting a core market of businesses with 1 to 10 employees. Over the course of 12 years, they grew Grasshopper independently, without outside investment — a rare feat among fast-growing technology companies. By 2016,  Grasshopper was… Read more »

Niche Down To Jack Up Your Value

Gabriel Galvez founded Merger Labs to generate more leads for his investment banking clients by offering them digital marketing services. What started as a side project grew more quickly than anticipated, and within 18 months, Merger Labs was experiencing growing pains executing their marketing campaigns. The company needed operations help, but instead of building the expertise… Read more »