Making Improvements that Will Benefit the Seller and the Buyer As you start thinking about selling your business you should also think about how you might make some improvements to the business to maximize business value to a buyer. Identify the company’s shortfalls and consider fixing them. Look at your business through a prospective buyer’s […]
BTEP: Where Should You Start? You are a business owner. You have worked hard, possibly for decades, building your business. You are smart, and the business has been successful, but it is time to move on. Perhaps you want to retire; maybe you want to try your hand at something new. Regardless of the reason, […]
Venture Capital Unicorns are as Rare as Real Unicorns A unicorn is an imaginary horse-like creature with a large, pointed horn. Venture capital unicorns are companies still privately owned with valuations exceeding $1 billion. Valuation is based on share price during the latest fundraising round. Industry source CB Insights reports that there are now approximately […]
Raising a venture capital fund for your business relies on the right fundraising model. Learn how to plan, identify and execute your VC route to success.
If you want to buy (or sell) a business, you need to know what the business is worth. Once that is calculated, you need to find out how much the owner (or prospective buyer) thinks it is worth. If you can get those two numbers to line up — itself a discovery process, and an uncertain one at that — you’re going to need a way to finance the actual transaction…
There are at least two reasons why early valuations are often misleading. First, the early investor might be (a) investing for strategic or even charitable reasons, rather than primarily financial reasons, or (b) a sucker. In either case, the angel may agree to an inflated valuation to help the entrepreneur, or so they believe, get even bigger valuations in later rounds of equity financing.
Because of the portability of intangible assets, it is often the case that a business owner may find that a sale of those assets separate and apart from its tangible assets, working capital, and operating liabilities will generate a more positive outcome for both the buyer and the seller.
Your company’s online footprint often constitutes an important part of the overall value of its good will. Indeed, the ability to create an online experience for a brand and to use online channels to reach new customers serve existing ones is a part of the evolving nature of business in the 21st century. As a seller, you should understand the value of online assets.
Most other business owners find themselves in the same situation. Generally, a business owner either does not have a plan for staging a company for transition, only has one in her head, or hasn’t communicated her plan to stakeholders.
There are multiple factors that determine the right time selling a business. The greatest challenge for many owners is creating a strategic plan based on the owner’s individual priorities. An owner who is happiest post-sale is the owner who determined her priorities while a seller who does not resolve her priorities and objectives is often disappointed in a sale of her business regardless of the selling price. An owner is often forced to balance personal and financial priorities against one another. It is critical for an owner to be honest about her skills, desires, timing and business.