Clarify Your Path To A More Valuable Business and Turn Your Vision Into Reality

Principle #2 – Financial Targets. Before you double down on your growth strategy, pick an exit option, and sell your business, you need to understand what your financial targets are and how much your business needs to be worth for you to hit your goals.

• Overview of the three financial targets 1.) Target Income 2.) Net Worth 3.) Business Valuation
• Enterprise vs equity value
• Intrinsic vs transaction value and methods to value a business
• EBITDA and Normalized EBITDA
• Multiples of EBITDA and WACC (weighted average cost of capital)
• Company specific risk and long-term value creation
• Case Studies - WACC and enterprise vs equity
• Case Studies - financial targets and net proceeds
• Asset vs stock sale and typical deal structures
• Net proceeds calculation and case study examples
• Podcasts for Principles #2 - Financial Targets

Principle #3 – Exit options. Once you know what you want and what your financial targets are, you can look at multiple exit options through a lens that makes sense to you. Learn how to view exit plans from different angles to understand their impacts on valuation, timing and post-close relationships in order to fully evaluate their fit.

• The importance of understanding the difference between your ownership and management roles
• Exit Option #1 - Internal transfer / buyout
• Exit Option #2 - Acquisition entrepreneur
• Exit Option #3 - ESOP (Employee Stock Ownership Plan)
• Exit Option #4 - Private equity firms
• Exit Option #5 - Strategic buyers
• Exit Options Attribute Comparison Chart
• Podcasts for Principle #3 - Exit Options

Principle #4 – Increase Value. Your business is not valued on just the top and bottom line. The value of your company is directly related to how predictable, sustainable, and transferable the cash flow is.

• Creating sustainable, predictable and transferable cash flow
• The 8 value drivers (functional areas) of a business
• Value Driver #1 - A detailed and actionable strategic plan
• Value Driver #2 - A clear financial strategy
• Value Driver #3 - sales & marketing
• Podcasts for Principle #4 - Increase Value

Principle #5 – Team of advisors. In order to optimize your plan and get what you want, you need to hire the best team of advisors you can. Missing one idea or technical piece of the puzzle could cost you hundreds of thousands — if not millions — of dollars.

• Building the team, areas of expertise and levels of advice
• The difference between investment bankers, brokers and the process of selling to a 3rd party
• Podcasts for Principle #5 - Team of Advisors