This Week@Work, a business owner has little option but to lead their business. And you cannot lead without a destination or goal to guide and direct your leadership. That destination should be enterprise value.
This Week@Work, if relationships build and grow a business, but you’re not the one who holds those relationships – you’ve got to start building your own.
This week@work I met with a frustrated, established business owner who is looking to sell his business in the next 5 years. As part of his exit strategy he ramped up revenues to appeal to a buyer, but his success has put him squarely in ‘No Man’s Land’: Too big for private buyers to afford and too small for listed entities to be interested in.
It’s another warning to start with the end in mind so you can build your business for the right buyer.
There are 2 elements that go into valuation: The first involves the 5 technical levers of valuation which can be built into your business, and they make up around 60%, the other 40% is all about how you strategically exit your business.
I outline the process in a couple of minutes in the video below, and have created a 5-part series on each of the layers of valuation that goes into more detail on each, you can find those here.