Learn How you Can: Dramatically Increase the Value of Your Business and Then Turn it into CASH
Scores of books have been written on how to make a small business more profitable. However, until now, none are available on how to make a business more valuable This book and software combo reveals the secrets on how to sell a Small Business for Big Money
Use the little known information this book and software reveals and take advantage of the Unique Opportunity that a poor economy presents to enable you to build value and increase earnings.
The six reasons why a down economy intensifies the demand for and value of small and mid size private businesses are all explained starting on page 89 of the book.
This unique book and software combo provides straight forward immediate, short and long term strategies and tips that can add Thousands if not Millions to your wealth through the increased value of your business.
This Information Package will put you in charge of Your Company’s Value so you can “Leave in Style with a Big Pile and a Bigger Smile”
What other business owners have accomplished with this information
A New England printer increased the value of his company by $1,700,000 in the ten months before selling his business using just one technique illustrated in this book.
- A young woman wished to sell the company she founded while in college five years earlier. She had an offer for $165,000 and thought she could do better. The information in the book and software convinced her she was right and she refused the offer.
After implementing a couple of the book’s Wealth Building Tips she sold her business 14 months later for a cool $1,000,000.
The elderly owners of a small retail chain decided to implement the changes necessary to make their business attractive to a different type of buyer. Eighteen months later they sold, with an increase in their valuation of $4,000,000, for CASH even though their income statement and balance sheet were essentially unchanged.
We want you to be able to achieve similar results with your business
|“My business had never made more than $50,000 and had a total of $50,000 in equipment and inventory. I was able to sell it for $497,000 thanks to the guidance and information Ted’s books and software provided.”
Gregory Scott, Johnston, RI
Straight forward immediate, short and long term strategies and changes that can add Thousands if not Millions to your wealth through the increased value of your business a business may be worthless to one yet worth millions to another – find out why and how to identify the latter.
- How one company, as part of their exit strategy, doubled their valuation in less than a year
- As hard as it might be to initially believe; The dynamic principal that can cause the value of businesses with earnings of $100,000 to range from a hundred thousand dollars to MORE THAN TWO MILLION DOLLARS!
- How you can dramatically increase your business’s value without showing more profit
- Description of the four major types of small and mid size private companies acquirers plus how they think, what they will pay and why
- How to employ Public company strategies to dramatically increase the value of your business
- Scores of Wealth Creation and Wealth Preservation Tips
- How to keep the business in the family even when no family member is qualified or willing to replace the founder
- Why a down economy may present the optimum time to sell your business.
- Much, much more
Take a page fromPublic Company CEO‘s play book and learn how to Build Wealth as well as Profits
Your primary focus, as owner of a Private company, is upon making money while a Public Company CEO’s chief concern is increasing the value of their company (as indicated by their stock price). Now, using this offer’s Software, you will be able to:
- Keep an eye on the value of your Private Company just as the Public Company CEOs do. Monitor your progress as you increase your company’s value and build wealth with your business
- Identify the profile of the type of buyer willing to pay you the Most Money
This book will show you how to employ Public company techniques to create extraordinary wealth with your business or franchise.
Here are some of the topics the book covers.
- Employ Public company strategies to dramatically increase the value of your business
- How to avoid traps and mistakes that literally cost business owners hundreds of thousands in unrealized value
- Non financial factors that impact your business’ value
- How to increase your business’ value without increasing declared profits (besides re-casting or normalizing earnings)
- Moves you can make to maximize your company’s value before you put it on the market – both short and long term
- A complete and comprehensive description of the types of buyers in today’s marketplace and how they determine value.
- How to determine which type buyer will be best for your business and pay you the most money and how to avoid the rest
- Ten reasons why selling a business is different from selling essentially anything else you can imagine and how to capitalize upon the differences.
- An overview of the process a savvy business person employs to sell his/her business
Unlike Public Company CEOs who’s Primary Focus is on Value;
Private Business Owners are Primarily Concerned With Earnings.
This Book Shows You How You Can Dramatically Increase BOTH Earnings and Value
The ONLY Business Valuation Software That Reflects the Realities of the Marketplace for Small Businesses
Unique Rules and Environment
The rules and environment that govern the purchase and sale of private companies are unique. A perfect example of this is the fact that the American Society of Appraisers has assigned Private Businesses their own Definition of Fair Market Value (FMV) i.e. Price to be paid “under terms usual in the marketplace” In other words, some component of seller financing instead of the way everything else is sold. Everything, except a private business, is sold for “cash on the barrel head.” Why is the sale of a small business an exception? you ask. Because a company’s “Goodwill” Value does not represent a solid bankable asset and therefore not an asset readily financed. “What is Goodwill?” is a very common and often asked question. What do you think it is?
Conventional Business Valuations Do NOT Address
the Amount of Cash you will Receive at the Closing Table
It’s not what you get – It’s how you get it.
Conventional valuations provide a probable price but ignore how the price will be paid. An extreme example to illustrate the point – Price = 1 Million Dollars – Terms of Sale = $1 a day for a million days. A typical business valuation will provide a price and totally ignore the probable terms. Our software develops both Price and the Probable Terms.
The software calculates both a probable Price and likely Terms (price with seller financing) as well as the Fair Cash Value (FCV) for the business. You need to know what the two values are before you decide to sell. Most business owners would rather not offer financing to a buyer however, what if the Cash Value of the company is about the same as the probable down payment if terms were offered? Additionally, won’t the quality of the buyer you attract have a bearing on your willingness to offer financing? For this and other reasons explained in the book, you will not put a price on the business when you “go to market.”
Different Buyers will Pay Different Prices
There are essentially three classes of buyers active in the marketplace for small and mid-size Private businesses. Each has its unique perspective and approach to determining a business’s value. The software calculates a Fair Cash Value and Fair Market Value for each class or type of buyer. For example: a company we represented developed a valuation range for the three buyer types of $165,000, $450,000 and $750,000. The best price the client could expect at that time was $450,000 but, if our recommendations were implemented to make the company attractive to the third class of buyer, the larger number could be realized. Our client decided to implement the recommendations. Eighteen months later we sold the company for $1,000,000 even though company Earnings and Balance Sheet were essentially unchanged.
The Software is Easy to Use
Our software has been designed to be used by the Non-Financial Entrepreneur (although you may decide to acquire it for use by your accountant or other trusted advisor) and it is very easy to use. Simply enter numbers into a template and the software will automatically:
- Develop a comprehensive financial analysis of your business designed to give you a view of your company from the outside in (Your accountant would have to charge you much more than the cost of our program for this feature alone)
- Illustrate the price and terms different types of buyers would be willing to pay today and why
- Show how much financing you would be expected to provide and, if you were to insist upon a cash price, what an all cash price might be
- Identify the best type of buyer to attract as well as the type(s) of buyers you should avoid.
- Transaction Structuring Model – Allows you to compute “what if” scenarios by changing down payments, interest rates or terms etc and calculate your ROI and Fairness Testing so you can get back to the negotiating table quickly
Don’t let the ease of use fool you. This is very powerful software and an exceptional tool that is highly valued and used by MBAs, CPAs and other financial professionals all over the world. With our software you’ll be able to present your business in a most professional way, which by itself, can raise the value of your business and the price you can get for it.
Sample Business Valuations and Transaction Structuring
The sample business valuations will help you as you value your own company. The samples include retail, service and manufacturing/distribution businesses representing small, medium and large private companies. Having completed valuations to review facilitates a fast track understanding of this mysterious subject. The combination of our book and the valuation examples will help you determine and, of equal if not more importance, grow the value of your business.
It’s not what you get but, more importantly, what you get to keep that is important and that’s where the Transaction Structuring feature becomes important. You and your financial advisors can test. various transaction structures for fairness and measure tax implications of various transaction structures.
Understanding the motivations of the different types of buyers in the Marketplace for small and mid-size companies and, how they each determine value is key to maximizing your company’s valuation. The adage that “Different Buyers Pay Different Prices” and that “The Right Buyer will Pay the Best Price” applies to the Valuation of Your Business also. Knowing how to prepare your company to be an attractive acquisition for your “Right Buyer” is a crucial element in Maximizing Your Company’s Value.
The book provides you with the Marketplace Intelligence and Information you need to develop the recommendations that will enable you to Maximize Your Company’s Value ON YOUR OWN.
An Unfortunate Reality
Advisors to small and mid-size business owners, especially those with degrees in finance or business, are well schooled in “Wall Street” protocols and methods. However, this excellent training does not prepare them for the marketplace realities that are found on “Main Street.” As a result you can almost be guaranteed that the type buyer they will choose to approach will be the wrong choice and the Valuation is inappropriate. This is especially true if your company has earnings between $250,000 and $1,000,000.
Wrong Type Buyer #1 – You will be offered a low ball price, confidentiality is lost, key employees and customers are nervous and perhaps leave.
Wrong Type Buyer #2 – Many entities tour your facility, show an interest, make offers that you are advised are inappropriate. You spend thousands on legal and accounting fees for deals that tank, eventually word gets out that your business is “On the Block” – See lost confidentiality above.
Wrong Valuation #1 – Appropriate buyer candidates are driven away by the Wall Street valuation – See above
Wrong Valuation #2 – Offers are rejected because they contain a component of seller financing or the Cash Offer is too low.