Today we discuss how to value a business, examine a case study of a common growth strategy, and take a look at new economic data. As always, click on the headlines to read the full articles.
How To Value A Business
“[N]o one can tell you either what formula they will use to evaluate your company or what your business is worth in their initial meeting with you. If they do, chances are good that they are using the same valuation method on your business that they use on every company that they work with. Often these are industry-developed rules of thumb.
Sometimes rules of thumb can be accurate predictors of value. However, the danger in using this method alone is that it does not take into account anything that may be unique about your company…In all likelihood, you have built a business that has specific distinctive features that could be key to your valuation.
Nor is the rule-of-thumb value based on recast financial statements.”
Case Study of A Common Method for Growth, the Add-On Strategy
Boot Barn recently acquired RCC Western Stores to grow its operations. This growth strategy, expanding by acquiring, is a quick and popular method. Find out more about how Boot Barn did it and why.
Economic Recovery – Our Uncertain Times
“I always find it fascinating when data is released that plainly indicates that the economy is actually doing better than most folks believe. This was the case with data released a few months ago that looked at overall global trade and U.S. exports, both of which are at record highs (unlike what we normally hear about the economy).”
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