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.
“[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.”
Boot Barn recently acquired RCC Western Stores to grow its . This growth strategy, expanding by acquiring, is a quick and popular method. Find out more about how Boot Barn did it and why.
“I always find it fascinating when data is released that plainly indicates that theis 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).”
© 2012 Generational Equity, LLC All Rights Reserved
Are you a business owner that’s beaten down by all the uncertainty regarding the future? Then learn what you need to know to get started with an Exit Planning Basics: What You Need To Know Before You Start.plan. Download a complimentary whitepaper from M&A advisory firm Generational Equity called