A Different Approach
In anticipation of the turnaround, and corresponding increases in confidence and risk-taking (and it is starting to happen), baby boomer owners should know their exit options and be ready. They need to ask themselves these questions:
Is my company salable?
If so, what are the ownership transfer options?
Is my family OK with the decision to sell?
What will I do after I sell?
Have I built the value in my company so the sale proceeds will finance my lifestyle? If not, what can I do to improve its value?
Do I have the right advisors for the process?
Is my company ready for a thorough (and exhaustive) due diligence process?
Hulu’s Hidden Value – A Different Approach
In our book Intangible Capital, we suggest companies begin tracking their “i-capex”, or their investment, in intangible capital expenditures. They should do this in management accounting reports–it won’t change what they do for tax purposes or GAAP. In Hulu’s case (and in the case of other companies that want to get compensated for their full value), this kind of report would give a clear indication of the investment made to build the company to where it is today–one that merits consideration for an IPO.
A Different Approach – for Owners
Many owners are so involved in every aspect of their business that they are actually doing their business a disservice. The reason is that a business that is dependent upon the business owner to function is not worth as much to a buyer as a business that is built to stand on its own. And it’s too bad because it is absolutely possible to make the shift and create a business that will survive without the founder and have significant value.
The Role of Financial Executives in Exit Planning for Business Owners
The Role of Financial Executives in Exit Planning for Business Owners
Commercial Bankers Must Know the Owner/Manager’s Exit Plan
Commercial lenders must know the Owner/Manager’s exit plan.
Getting Ready to Sell in the “up” cycle
To be ready for the “up” cycle, look at three areas: 1) top line revenues 2) international 3) intangible capital
Getting Ready to Sell in 2012+
This means that the current market is primed for buyers and will remain a ‘buyers’ market’ until 2012.
Good reputation and winter coats
The collection and distribution of these coats, over 600,000 of them, has taught many elementary school and middle school children about the importance of giving, charity and taking care of your fellow man.
A Different Approach – Get Feedback
If you can learn how to sell value, showing ROI and highlighting benefits, you will feel less pressure to compete on price alone.
A Different Approach
There’s no better time to start the feedback process, analysis, and goal setting than right now – it is January after all.
