7 Ways Investors Look at Your (or Any) Business Written by Chris Mercer and posted on his website www.chrismercer.net reposted here pursuant to creative commons licence
After being involved with many business transactions over many years, I’ve realized that there are at least seven ways that potential investors look at a business. Not every investor will look from every perspective. There are, of course, financial buyers and strategic buyers, and their perspectives will likely not be the same and not all perspectives will be relevant for every company. However, these various perspectives are worth discussing for your consideration.
Tripp Braden is a friend of mine who has recently graduated from the Certified Business Exit Consultant course hosted by John Leonetti in Boston. His article How Does Your Marketing Impact the Bottom Line? is very insightful.
JACOLINE LOEWEN Special to The Globe and Mail Published Tuesday, Oct. 22 2013, 9:47 AM EDT (re-printed here pursuant to creative commons licence)
Contrary to historic trends, family business owners are no longer automatically passing the torch to the next generation. They want a nice return for all their years of hard work, and they are contemplating succession in ways that differ from past generations.
Mike McCarron, one of the founding partners of MSM Transportation, which was sold to Wheels Group, has seen this happening in his industry. “The trucking business is fragmented and heavily populated with family-owned businesses running a good book of business with loyal customers they have served for years. Continue Reading
Tom Deans has written two books: “Every Families Business” and the latest “Willing Wisdom”. Both books provide a set of questions that are designed to take a deep dive into a complex and difficult area of family relationships. In the first it was family business succession and in the second Willing Wisdom it is the death and legacy of family members. The primary lesson for me is that “questions can create culture”.
In Willing Wisdom p.79 Tom writes:
“and by culture do you mean relationships?” asked William.
“Yes, relationships formed through talking,” replied Ashley without hesitation.
A relationship is “the way in which two or more people are connected, or the state of being connected”. Our individual culture is formed by those to whom we are connected, and the quality of those connections. Effective business succession is, to a large extent, about the owner creating a new and improved culture with: family; advisors; employees; management; successors and themselves. In essence what this means improving the owner’s connections. Tom’s work is aimed at improving connections within the business family and Willing Wisdom is aimed at improving the business families relationship with death and legacy. Continue Reading
Published September 23, 2013 | By Tripp Braden (originally published on highgrowthbusiness.com re-printed here under a creative commons licence).
Avoid the stress and plan your exit.
For many entrepreneurs, your business means many things. For most, it has taken a lifetime to build your business and you are very intertwined with every aspect of its sales and operations. You measure your success by the success of your business. Your financial independence is tied directly to the business’s success. Continue Reading
Written on October 4, 2013 – 7:30 am | by Corina Weigl (shared by the All About Estates blog)
I recently came across an article, entitled “Shameless Lawsuit”. It was about the claim Samantha Perelman is bringing against her uncle, James Cohen. Samantha is the daughter of Claudia Cohen and Ronald Perelman, billionaire chairman of Revlon. Claudia Cohen and James Cohen are the children of Robert Cohen the founder of Hudson News. In 2008 Hudson News was apparently sold for around US $805million.
In her claim, Samantha alleges that her uncle James unduly influenced her grandfather with respect to the provisions provided for her in his last Will. Robert Cohen passed away in 2012. Samantha’s mother, Claudia, had already died in 2007. Continue Reading
by T. Ray Phillips – April 5th, 2012 (article originally appeared in Indy SmallBiz reprinted here under creative commons licence).
When I ask business owners about the possibility of installing an employee incentive plan, I often hear one of two responses:
“I would like to do something to reward my key employees for their performance. ” OR
“You know, one of my best employees left last week for a company for more money. I think I’d better do something to stay competitive in the marketplace. ”
May I suggest that these two motives are not nearly self-serving enough? The purpose of installing a bonus plan for your employees is to motivate them to help you reach your exit goals. Continue Reading
A great new post by famed family succession author Matthew Wesley. Hey it’s pretty cool that he quotes me I must say :)