Getting Ready to Sell in the “up” cycle
To be ready for the “up” cycle, look at three areas:
1) top line revenues – After all the cost cutting most businesses did in 2007-2009, companies should now be looking to grow the top line again. Potential buyers will look for positive trends in revenues and profits entering the next selling cycle. Remember, you can’t grow by cutting. It’s time for corporate investment on many levels and time to incorporate new ways of thinking to get values up and businesses back on their feet and hiring. Time is ticking–the seller’s market is only a couple of years away…
2) international - Any competitive analysis by a business owner in today’s market has to take into account foreign competition for both manufacturing and services. It is no secret that the BRIC (Brazil, Russia, India, and China) nations have been exploiting their vast raw materials and cheap labor to take market share away from U.S. businesses for decades. Business owners need to be on the defense – looking ahead the next five years they must be self-critical and analytical in order to envision how they can combat this competition.
3) intangible capital - Finally, we espouse the under-appreciated importance of intangible capital: the human, relational, and structural capital of a business. These assets accounted for 70% of the average merger in the past cycle and will play an even greater role in the future. In your self-analysis, focus on these intangible assets and you will uncover the power and potential of your business.
