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Digg it UP - How To Maximize The Value Of Your Business
Do you have piles of business cards from other people? Maybe they are neatly arranged in a Rolodex, cardboard box or business card case or in small piles around your office, in your briefcase or in the pocket of the suit you wore to the last event. Hint: they aren't doing you any good there. But how do you take advantage of the gold that's in those piles?The key is to develop a system that makes sense to you and that you can mine for information when you need it. So dedicate an hour or so and collect all your cards from various sources. As you go through them, put them into piles. I'm suggesting some categories below, but you may also come up with some of your own.I-Don't-Know-Why-I-Have-This-Card Pile: When you look at a card and you have no idea why you have it and you can't remember the face behind the card, it's time to dump it in the recycle bin. If it is someone you are meant to work with, they will come
4. Customer Diversity: Acquirers are nervous about businesses where a high percentage of business comes from a handful of customers. Ideally, no single customer should contribute to more than 10% of your revenues or profits. The best solution for this problem is to diversify the customer base. If that is not feasible, be prepared t
How active are women in terms of contribution to overall social-economic changes of a country can be determined in several ways and by the use of different figures. Some of the most used figures are employment of women, their position in the system of political and social decision-making, educational level, but also “conquest” of new occupations. Computerization is evident in all business spheres and it influenced the development of some completely new occupations like webmaster, web designer, occupations related to computer graphics creation, computer games creations and similar.In mentioned occupations , women also found their place. However, in terms of new occupations, we cannot speak always about new jobs which appear as a product of fast technological changes and the expansion of computer technology. Namely,it is about “conquest” of some existing occupations by women that were earlier reserved only for men. Among them ,do
How can you get the best value for your business?z
The purpose of this article is to help you look at your business as an acquirer might in valuing your company. The more attractive you can make your business to the acquirer, the better chance that you will get a higher value for your business. Your M&A advisor will also play a big role in the valuation and we will cover this in a different article.
Here is a list of key vectors acquirers use in evaluating business:
1. Strategic Fit: Strategic fit occurs when some aspects of your business (products, services, distribution channels, location, etc.) are worth a lot more to another player in the industry than it is to you. When a strategic fit is established, the acquirer sees your business on a post acquisition basis and may be willing to offer much more than the going market multiples. Give careful consideration to who the strategic acquirers may be. This is one area where a knowledgeable M&A advisor can be of great help to you.
2. Cash Flow: After strategic fit, cash flow is the single largest value driver for most businesses. Think of ways to improve your EBITDA on a sustainable basis. Acquirers are suspicious of short term jumps in cash flow. So, be careful not to delay hiring or equipment purchases beyond what you believe is reasonable. Once an acquirer starts doubting your credibility, the due diligence increases and the acquirer will make changes to valuation to adjust for the risk.
3. Management Depth: Keep in mind that acquirers buy a business that they hope will be functional and growing after the sale. It is tough for the acquirer to place high value on your business if you are the sole decision maker in the company and the business depends largely on your skill set. Developing your staff so that they can run the business when you are gone can pay big dividends when it is time to sell. If you are concerned about your employees leaving once you are gone, it may be good idea to consider employment contracts, stock grants and other incentives that give them a reason to stay long term. If possible, start work on staff related issues at least a year before you plan on starting the sales process.
4. Customer Diversity: Acquirers are nervous about businesses where a high percentage of business comes from a handful of customers. Ideally, no single customer should contribute to more than 10% of your revenues or profits. The best solution for this problem is to diversify the customer base. If that is not feasible, be prepared to
As populations in the developed world are growing older and many countries are experiencing a crisis in the pension system, we are facing the prospect of having to work past the usual retirement age. Yet, at the same time, older people are not always welcomed back into the work force. Many also have difficulty finding a new job if they have an unbroken track record and are simply looking for a change in career after the age of 40.There are a number of steps you can take to maximize your chances of getting a job, despite negative views regarding age on the part of some employers.When writing your CV or r?sum?, be sure to target it for the job in question. You can do this by highlighting all the skills and experience which are needed for the job and then proving that you have got them.It is not necessary to put personal information on your CV – in many countries it is illegal to ask about age and this will also
Here is a list of key vectors acquirers use in evaluating business:
1. Strategic Fit: Strategic fit occurs when some aspects of your business (products, services, distribution channels, location, etc.) are worth a lot more to another player in the industry than it is to you. When a strategic fit is established, the acquirer sees your business on a post acquisition basis and may be willing to offer much more than the going market multiples. Give careful consideration to who the strategic acquirers may be. This is one area where a knowledgeable M&A advisor can be of great help to you.
2. Cash Flow: After strategic fit, cash flow is the single largest value driver for most businesses. Think of ways to improve your EBITDA on a sustainable basis. Acquirers are suspicious of short term jumps in cash flow. So, be careful not to delay hiring or equipment purchases beyond what you believe is reasonable. Once an acquirer starts doubting your credibility, the due diligence increases and the acquirer will make changes to valuation to adjust for the risk.
3. Management Depth: Keep in mind that acquirers buy a business that they hope will be functional and growing after the sale. It is tough for the acquirer to place high value on your business if you are the sole decision maker in the company and the business depends largely on your skill set. Developing your staff so that they can run the business when you are gone can pay big dividends when it is time to sell. If you are concerned about your employees leaving once you are gone, it may be good idea to consider employment contracts, stock grants and other incentives that give them a reason to stay long term. If possible, start work on staff related issues at least a year before you plan on starting the sales process.
4. Customer Diversity: Acquirers are nervous about businesses where a high percentage of business comes from a handful of customers. Ideally, no single customer should contribute to more than 10% of your revenues or profits. The best solution for this problem is to diversify the customer base. If that is not feasible, be prepared t
Garment racks are a fixture in retail stores worldwide. But not all retailers realize the close relationship between their garment rack layout and the personality and feel of the store. Everything each customer sees and experiences within the store contributes to the overall impression she will carry with her, and will certainly influence her likelihood of returning. So the positioning of garment racks and your ability to use them effectively are very important in successful store management.The usage and layout of garment racks within your store speaks volumes to your customers and contributes to their overall experience as a shopper. That being the case, retailers need to put more thought into how clothing is displayed and what the collective projected personality of the store is as a result.Store owners should consider mixing a variety of racks into their store design, but cautions against having too much variatio
2. Cash Flow: After strategic fit, cash flow is the single largest value driver for most businesses. Think of ways to improve your EBITDA on a sustainable basis. Acquirers are suspicious of short term jumps in cash flow. So, be careful not to delay hiring or equipment purchases beyond what you believe is reasonable. Once an acquirer starts doubting your credibility, the due diligence increases and the acquirer will make changes to valuation to adjust for the risk.
3. Management Depth: Keep in mind that acquirers buy a business that they hope will be functional and growing after the sale. It is tough for the acquirer to place high value on your business if you are the sole decision maker in the company and the business depends largely on your skill set. Developing your staff so that they can run the business when you are gone can pay big dividends when it is time to sell. If you are concerned about your employees leaving once you are gone, it may be good idea to consider employment contracts, stock grants and other incentives that give them a reason to stay long term. If possible, start work on staff related issues at least a year before you plan on starting the sales process.
4. Customer Diversity: Acquirers are nervous about businesses where a high percentage of business comes from a handful of customers. Ideally, no single customer should contribute to more than 10% of your revenues or profits. The best solution for this problem is to diversify the customer base. If that is not feasible, be prepared t
Anybody who works in marketing knows well that one of the first and most important thing to do is target definition.Target definition requires a systematic approach: from the analysis of the needs of the market to the analysis of the existence of an economic potential going through the market borders definition till the selection of the sector/sections of the market to be considered.Companies are increasingly choosing to reach their target using innovative tools such as CRM, guerrilla marketing, one to one etc. etc.Consumers preferences and wishes are changing on a daily basis and marketing strategies have to follow this constant transformation if they want to be effective. As a consequence companies must be flexible and ready to change quickly their marketing instrument.Sports marketing is an effective marketing tools , it gives a company the opportunity to leverage on the passion that consumers have
3. Management Depth: Keep in mind that acquirers buy a business that they hope will be functional and growing after the sale. It is tough for the acquirer to place high value on your business if you are the sole decision maker in the company and the business depends largely on your skill set. Developing your staff so that they can run the business when you are gone can pay big dividends when it is time to sell. If you are concerned about your employees leaving once you are gone, it may be good idea to consider employment contracts, stock grants and other incentives that give them a reason to stay long term. If possible, start work on staff related issues at least a year before you plan on starting the sales process.
4. Customer Diversity: Acquirers are nervous about businesses where a high percentage of business comes from a handful of customers. Ideally, no single customer should contribute to more than 10% of your revenues or profits. The best solution for this problem is to diversify the customer base. If that is not feasible, be prepared t
A background check is essentially a verification procedure. It is a method of investigating the past of an individual and his achievements and failures for the purpose of recruitment. This helps the employer to judge the validity of information furnished by the prospective employee.Any company must go through a proper and systematic background checking before making a hiring decision. Background checks have proved to be more beneficial and effective in comparison to personal interviews and information provided by resumes and Reference Letters.Background checks are organized methods of investigation, where the company follows a particular course of action by conducting a research work as par requirement disregarding additional unnecessary details. The requirement of screening by Federal or Sate Law has become necessary in most professional specifications.Background check becomes more crucial and indispensable w
4. Customer Diversity: Acquirers are nervous about businesses where a high percentage of business comes from a handful of customers. Ideally, no single customer should contribute to more than 10% of your revenues or profits. The best solution for this problem is to diversify the customer base. If that is not feasible, be prepared to accept part of the transaction price paid as earn-outs or plan on supporting the acquirer in an advisory role to ensure customer continuity.
5. Recurring Revenue Stream: Acquirers love predictable and low risk revenue streams. Any long term contracts, annual service/licensing fees, and other recurring revenue streams make business more desirable and fetch a higher price in the marketplace. In service oriented business, converting predictable customer support calls into recurring revenue stream can turn a business liability into an asset.
6. Desirable Products & Services That Are Difficult To Copy: Acquirers place higher value on a business with unique products, services, or distribution systems than a business whose offerings are considered generic. What is unique about your business? Think of ways in which your product/service is unique and why it should be valuable to an acquirer. Having an edge and having the ability to communicate the edge can do wonders to your business’s valuation.
7. Barriers To Entry: With so much competition all around you, why is your business difficult to copy? Why will the acquirer have as much success with the business as you have had? Is it because of intellectual property (patents, copyrights), regulation (permits, zoning), difficult to get contracts (you are one of the two or three qualified vendors at each of your major accounts), or something else? Having good answers to these questions indicates that there are barriers to entering your business. These barriers make your businesses more valuable than your competitor’s with similar cash flow.
8. Pending Upsides: You believe you are about to come up with a compelling new product or make major inroads into a premier customer. You expect these developments will double your business next year and do not want your company to be undervalued based on current financials. Delaying the sale has other consequences that make it unattractive for you to wait. So, what do you do? A good forecast backed up by management presentations with examples on why the company would achieve the forecasts is extremely powerful. However, keep in mind that any forecasts that do not materialize as planned during the sales process can have substantial negative impact on the sales price. Having a good understanding of your product/sales pipeli
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