Listen to the Episode Below:
What’s the value of your business? What’s it worth? Many entrepreneurs look at their business–and all the blood, sweat and tears they’ve poured in–and say “That HAS to count for something, doesn’t it?”
On this episode, entrepreneur and investment banker Nate Nead explores the discrepancy between what business owners expect and what business buyers pay … and how to close the gap so you get more when running your business in the process.
What Gives Your Business Value…
- Understand the business definition of “value.” Buyers and bankers look for a diverse customer base, long-term deals with clients, and reasonable EBITDA revenue flow. Get those building blocks in place first.
- Use “buffers” to keep emotion out of it. If your business is your “baby,” you’ve made huge financial and emotional investments in it. But emotion clouds your judgment when it comes to “letting go.” Let an investment banker be your gatekeeper with potential buyers so you can make objective decisions.
- Stage a beauty contest. (Better yet, have an investment banker–with their connections–do it). If you have multiple buyers competing for your business, its value increases because of market demand.
- Look to tech to help you scale. Nate took his investment banking services, and integrated a technology platform to do deals more efficiently (www.investmentbank.com). Tech can give you the diversity to connect with potential customers and build the kind of revenue you’ve been striving for.
Nate Nead was clear on how to think big, while thinking realistically. Or, as DJ Casey Kasem used to say, how to “keep your feet on the ground and keep reaching for the stars.” Make sure you block out time to listen to Cash Out BIG.
Nate Nead is a licensed investment banker, Managing Director and Principal at InvestmentBank.com. Nate works with profitable and growing middle-market companies in obtaining growth capital prior to an ultimate and maximized business exit. He has assisted companies in digital media, software & technology, oil & gas, business services and retail in selling their companies for the highest possible price through strategic auctions. Nate holds an undergraduate Bachelor of Science degree in Business Management with minors in Chemistry and Biology from Brigham Young University and an MBA in Finance from the University of Washington. He resides in Seattle, Washington.
“To be mediocre when only application and diligence would have netted superiority is an error akin to sin.” – Spencer Kimball
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