BIG PAYDAY COACHING™
Focused on helping you sell your business far faster, for far more money
7 BUSINESS VALUE MAXIMIZATION PHASES TO BUILDING
A GREAT, SELLABLE COMPANY
PLUS, PERHAPS THE MOST IMPORTANT, POTENTIALLY LIFE-CHANGING, OFTEN OVERLOOKED CONSIDERATION IN THE DEAL.
Our Big Payday programs are designed to help your business maximize its value, become irresistible to qualified buyers, and ensure that the entire experience is as joyful of a celebration as it should be.
To be clear, our consulting company is NOT a Business Broker, M&A Firm, or Investment Banking Firm. Our laser focus is to prepare you for your Big Payday BEFORE you reach out to these other firms, which perform an incredibly valuable service. We rely and work closely with the best of the best of these brokerage firms.
Unfortunately, businesses often are significantly undervalued or difficult (or impossible) to sell because they lack a few simple but important elements that make them attractive to investors. Knowing these elements can help you prepare your company in advance of the sale.
How do I know these things? Because, I have bought and/or sold 8 companies and raised $77M in Private Equity funding. Plus, I have guided several clients to sell their businesses the right way.
I have firsthand experience of the pain of doing it wrong… and the pleasure of doing it right. Honestly, if I knew then what I know now, I would have received 200%+ more for my first company and avoided some stupid and extremely painful mistakes in selling my first company.
HERE ARE 7 PHASES FOR PREPARING YOUR BUSINESS FOR SALE BEFORE YOU SELECT A BROKERAGE FIRM
In my #1 bestselling book, “HyperGrowth”, as well as our coaching programs, I share 7 SuccessDrivers™ to Building A GREAT Company. It stands to reason that these should be included in the list of things that professional buyers will look for in a company to acquire.
After reading below, you can register for a Free 15 Minute Discovery Session to Find Out how you can prepare your business to sell faster, for more money, and have the future of your dreams.
VALUING YOUR COMPANY
What is your company worth today? What changes do you need to make in order to significantly increase the value and make it far more attractive to a purchaser?
We will help you answer these questions, create a plan, and help you execute this plan with precision to achieve GREATNESS.
We will also help you get a clear and realistic value for your company, both TODAY, and at your target date to list your company for sale. Plus, determine the most favorable terms of the sale, including life after the sale (for many the MOST important overlooked area)… more on this in a moment.
THE FASTTRACK TO PROFITS
Becoming a GREAT company that maximizes growth and profitability first involves a laser focus on optimizing and maximizing your revenue and profits from your current marketing, sales and client value maximization activities.
We will help you and your team create a model for increasing profitability significantly, without any additional investment in marketing, sales or technology.
We then help you rapidly identify simple, easy to implement strategies and systems that will accelerate your growth both in the short term and over the long haul. This includes helping you cultivate the “low hanging fruit” that can fund your further growth and line your pockets.
Generally, clients pay for our 12-month fees multiple times over during the first 60 days… from newfound profits we help you create.
IMPORTANT: Businesses often are valued at a multiple of 4-7 times the profit (EBITDA)*… so every $100,000 of profit generated in this phase can add $400,000-$700,000 or more to your business value.
*One of several methods used for valuing a company.
GREAT companies are SYSTEMATIC MACHINES! Having effective systems in place, both the technology and processes, is more important today than ever in building a rock-solid business that can run without you, and produce predicable results over the long run.
We’ll teach you powerful ways to help you and your team more effectively implement and execute in order to lock-in your best performing practices and results over the long term.
We will help you implement or improve your data collections, KPIs, and reports so the buyer has a crystal-clear picture of how the business is performing, as well as the predictable results for the future.
Purchasers LOVE the certainty that a well-run, systematic company provides.
Next is a focus on expanding your marketing and sales channels to drive in even more qualified leads and convert more of them to high paying loyal customers, clients or patients.
You may being saying to yourself, “Scott, why is this not Phase 1?” Good question. The answer is simple. Before you invest in finding additional ways to increase customers, some costly and not effective, I believe you need to first cultivate the low hanging fruit profit that is easy for your team to cultivate, and have the systems in place to harvest these consistently at a high level.
We will work with you on both on and offline marketing programs and channels, as well as help you train your sales reps (if applicable), and even help you hire superstar reps.
You will follow the “Predictable Marketing System” to create predictable new client, customer or patient flow.
The bottom line is by showing faster future growth, your business is worth more money!
THE “SECRET SAUCE”
Differentiating your business from your competitors is critical to maximizing revenue, price, and profitability. It is also a powerful business valuation driver.
GREAT companies have a “Secret Sauce”… that thing or those things that make them the only logical choice for their target customers.
We’ll help you strengthen what we call your “Compelling Competitive Advantage™” so that you are indeed the only logical choice in the marketplace.
Buyers pay a premium for an innovative company that stays one step ahead of their competitors.
THE POWER TEAM
You cannot become a truly GREAT company without having a POWER TEAM. In this phase you will recruit or develop the right team members that can run the company without you, especially if your goal is to exit the company. Statistics show that the majority of founders leave the company within 3 years of selling it, and a surprising number leave within one year (often not a happy ending). Therefore, savvy purchasers place big value on a strong team and culture that will stay the course.
Stellar Culture: Often a loosely used word with little backing, GREAT companies understand that an amazing culture, which is fully lived and breathed throughout the company, is one of today’s ultimate success tools. It helps them recruit and retain top talent, improve performance in all areas, and is infectious to professional buyers.
KNOW YOUR NUMBERS
Having accurate clear financial reports is critical to running a GREAT company, as well as creating strong credibility with interested buyers. Although Profit and Loss Statements are important, nothing is more important than Cash Flow Statements.
Having the numbers is good. Knowing and understanding your numbers is great. Buyers value an entrepreneur that is on top of the business’ finances, metrics and KPIs. Remember, you can’t improve what you don’t measure.
FINALLY…PERHAPS THE MOST IMPORTANT ELEMENT OF THE DEAL
LIFE AFTER THE SALE
One of the greatest overlooked elements when selling an entrepreneurial company is, life “after the sale”. Get it wrong and you likely will be miserable…potentially for years to come!
- The Authority And Control you will have if you stay on to run the company. This is especially critical if the sale involves an earnout (where a significant amount of your payout is dependent on growth and profitability over 3-5 years).
- How Your Team Will Be Treated is critical. I have too often watched an incredible culture and team be dismantled by the acquirer, which results in a lot of pain for people that helped make the company GREAT, and highly sellable.
- Components Of The Business That Should Be Excluded From The Sale: Sometimes there are assets that are not valued by the buyer, but have measurable worth to you. It is important to identify these asserts and work out a carve out with the buyer. As an example, we had a client that manufactured certain products in China. The buyer did not want the headache and agreed to separate that “business” out as long as they had preferred customer pricing… our client earned $250,000/year on the carve out business.
- DRUM ROLL… the biggy. What will you do after you leave the company? Failure to plan this IN ADVANCE can result in a lot of pain and disappointment.
Too often entrepreneurs that sell burn through their money as they had no plan to transition to another income source.
And too often entrepreneurs find themselves a bit lost in what to do next. This can lead to deep feelings of regret for giving up what they knew and loved. Plus, often leads to a bumpy, and costly path to find something else they love that generates handsome profits. (YES, I personally went down that path. )
Each coaching arrangement is unique. The above phases may be done in different order depending upon your needs.
Is your company prepared to maximize your BIG Payday and Fulfill Your Dreams?
Register Now for a Free 15 Minute Discovery Session to Find Out how you can prepare your business to sell faster, for more money, and have the future of your dreams.
Valid for Companies with $1M+ Revenue. Must be Business Owner, CEO, or President