This video will talk about a little issue we're facing within our organization that is a business valuation calculator. Many people look at tools and real estate such as Zillow, or they look at Kelly blue book on cars and think"Why don't we have an online business valuation calculator?
We've seen you doing it for so long and, in reality, we'd love to. But it's not easy. There are a couple of really good baselines, like earnings and revenue. We can talk about guidelines and how they will look like. What makes it so difficult is you can have two businesses that have the same revenue and earnings, worth vastly different multiples. It's like two, three times the other, and they're not even far apart. That's due to intangibles.
There's so many things to an enterprise - intellectual propertyand defensibility software, and so on that can create an even more complicated discussion than just, Hey, what's your income and are you worth five times this hypothetically. We're now working on it. It's probably too late to discuss it, but we're working with an amazing company to resolve this issue, and we'll find a solution in the near future. But in the interim If you have any queries about how you can improve the potential of your company or what your business is worth, then why don't you contact us toll free at Freedom Factory. We're looking forward speaking with you in the near future.
How do I prepare my business to be able to sell?
Entrepreneurs often aren't sure how to prepare their businesses to sell. So you have decided you'd like to sell your business. What do you do now? Well, the first thing you'll need to take care of is get your home in order to prepare your company to sell. Also, get three or two years of tax of tax reports.
Financials and then put them together. Take them to your accountant and get ready for. Second, if you haven't created an operating manual, now is an ideal time to do so. You're familiar with how your company is run, and you know how different departments work and when it comes time to decide to sell the business we want to make it as easy as possible to transition to the new owner.
The value of that will to be reflected in the sales price. So go put your operations manual as well as new job descriptions and put your house in order. And the third piece is find, you know, put your team together. Find a good broker and an appraiser. Determine what your business is worth. Start to craft the story and then figure out how we going to get the business to market?
When will we introduce it to the market? You know, what's the current tax environment. You know, how do I change my financials? What do I refer to as simple. They're going to, we're going to use you EBIDTA or your accountant's ability to do similar things and then translate it into seller's discretionary cash flow, that is.
A fancy way of saying all the money business earns as you file your tax returns. It's all about minimization, right? Tax evasion is a crime. Tax avoidance is very smart. It's why you're looking to spend as low a tax as you can. We have to translate that you know, into certain of your other expenses such as depreciation certain extra-ordinary expenses, and then put it back to increase the value accurately.
Make sure you highlight the value your company creates, and that's gonna have a major impact. Also, do you know, what industry are you planning to enter? How do we maximize your multiple? There are ways to be able to do this. Think about the industry you're in. Determine, you're aware, all your financials.
Put an operations manual together to ensure that the transition is as smooth as is possible. All of this will be, can be a huge help in forming the best team. Find the most qualified appraisers, and find the best brokers to help you prepare your business for sale, and if you need any help with this, give us a call here toll free at Freedom Factory.
Is it the right moment to sell my company?
This is an extremely important subject and when is it the right time to sell your company? This question has a bit more art than it does science. In the end, it's a gut check of your knowledge. We're outside. This is my backyard. It's in my mountain home and is a part of my home.
The first thing I'm going to suggest is to get an escape. Leave the office. Escape the daily grind, either with your family or away. You must now find a place that you can go, no matter if you like to fish or ski , or go to the mountains , or go to the beach and whatever it is simply go there and change your location, and get somewhere you feel really comfortable.
Think on your own business. Then I take a look and I analyze it using three areas. First, am I here and am I in the right place? Do I truly believe in my business? Are I doing my best to serve my company or is my business serving me? And I think your life is too short to live in a place where you work for your company. Your business is your personal vehicle for more freedom and money.
What I mean by freedom is pretty simple - it's doing what you want, at the time you desire, and as often as you'd like, with whom you want. And if you're enjoying what you're doing and you feel like, God, this is amazingand I'm in the right place and am clear and I'm doing exactly what I'm supposed and that's how I view selling my businesses to entrepreneurs in general and entrepreneurs, then that's great.
The time is not right to sell your company. If you're not certain about that, I would consider a bit more and then take a deep breath and ask, do I have the right vision? Have I got a crystal clear idea about where I want to go?
I'm going to take my business in the next one, two, three, maybe even five years? What can I do in order to resolve it and feel great and confident that I've accomplished what I've accomplished? Now, if your business is growing by 40% per year or 50% a year, then you've probably got an enlightened view. It's likely that you're doing a great job and are probably in flow. However If you've been growing at 5% over the past five years, then it's slightly more difficult, and perhaps someone else is able to do it better than you.
If my company is expanding at five percent, I'm planning to sell. I'm saying, okay, I'm looking for an operator. I'm more of a strategic person. How do we concentrate on creating something that's incredible, and you're right on target and focused however, your growth rate will be an important indicator of the fact that.
The final point is, you've done what you were born to accomplish if, were to start your own business, when I began my business brokerage business, i was aware that I wanted to alter the way that entrepreneurs purchase and sell businesses. I've created three of the biggest brokerages. I've either hired the third one, I've purchased them to gain the people, and I've created a more efficient market. That's exactly what I set out to do when I came to this place.
But if you left your current business and think about it for a moment and then decide to leave, would you feel happy or would you feel as if you didn't complete the task you came there to do. Then I re-read it and I say that's fine does my company serve me. Am I clear and engaged each day?
Do I have anything left to do and do I have fresh ideas for implementing that vision? These are the things that will guide you through it. It's a little bit of an imprecise science, but all in all, it's a gut check. Do you agree? Do you think it's time to sell your business?
Because usually if I think about selling my business in six months, it's too to be. If you have other questions regarding this, or something else that you need help with, it's our privilege to help here at Freedom Factory. So just give us a call.
Click here https://freedomfactory.com/about-tyler-tysdal/ will give you a free business valuation to find out the worth of your business. Denver business broker Tyler Tysdal will help you to prepare your business for sale.
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