When your mission is to sell your business for absolute maximum, it’s a sales process.
A business sale price is a negotiated item. No list prices to go by. Sure, there are some rules of thumb. Some generally accepted earnings multiple ranges. But the ranges are large. We’re talking doubling and tripling of the prices paid. Millions of dollars hang in the balance for the prospective seller of a midsize company. Pair this with the fact that every business seller wants to sell for maximum value and the question becomes: How does the business owner go about securing maximum value?
While the new health care legislation signed into law on March 23 is indeed large, complex and far-reaching, we’re happy to report that the alarmist rhetoric emanating from some corners seems to be largely hyperbole. Even the highly publicized recent “one time charge to earning” announced by some large employers such as AT&T and Caterpillar appears to be extreme and politically motivated.
Difficult times are not for simply hunkering down and waiting out the storm. It’s a time for courage, creativity and action.
Is your business struggling financially? Have you been forced to lay off employees? Are you late paying creditors?
If so, your creditors fear the worst. You probably do, too. Maybe there’s a win-win here?
Warm, healthy smile. There may be nothing more important than a warm, healthy and relaxed smile. You’ll feel happy, more comfortable and be well on your way to making a good first impression.
Eye contact. Just as important as a warm smile is eye contact. Engage people by looking into their eyes as you meet them, listen and converse. Of course, it’s open eyes with a smile and a nod (as opposed to a cold stare)!
Is your world on such a desirable trajectory you can just keep doing what you are doing and get the results you want? If so, read no further. If, on the other hand, you want to accelerate your progress, change your course or hit some definitive accomplishments, now’s the time to set your goal and [...]
Continuous investment is the one absolute key to a successful business. Take Microsoft, Intel, Caterpillar and Nike as prime examples. All of these companies reinvest major amounts of their revenue and annual profit to build a stronger, more profitable business. When you invest, you delay gratification and forego the enjoyment of something else – usually dollars – in exchange for potentially higher rewards in the future. Heed this advice and your business will stand the test of time.
With every recession or economic downturn come business opportunities. Even though revenue is down, there are other ways to improve your business. Locate and hire some top talent who may have been laid off. Make that capital investment you’ve been putting off since you can probably get more for less. And, negotiate and lock in low long-term rates for business functions such as advertising, rental of a facility or a deal for computer network support.
Your gross profit and gross profit margin are two of the key ingredients in a successful business. Even though revenue is important, your firm’s gross profit is more relevant. In addition, the gross profit margin provides the cash your business needs and it drives the bottom line. Maintaining healthy profit margins on individual sales is critical since one losing product line can have a significant negative impact on your company.
There’s no doubt business profits are down so now might be a good time to buy a shareholder out and increase your ownership percentage. Just hope that shareholder doesn’t have the same idea.
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© 2010 DL Perkins LLC. All rights reserved | Call (800) 634-0605
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