Growth potential

Potential acquirers use 10,001 Hours to perform valuations of their targets.  More often than you might expect, the sellers are not always that sophisticated – many sellers technically own the business, but it’s really not much more than a glorified…

The Five Ds

Half of of exits aren’t from a sale, but from death, disability, distress, divorce, or partner disagreement the 5 D’s. There are a lot of benefits to preparing your business in case you just can’t show up one day. You…

The “Amazonification” of America

Dalton, Mass. – For June 2017’s inaugural edition of the Berkshire Business Confidence Index newsletter,  area business owners told me they were feeling pricing pressure from national competitors. Owners also confided that they were simultaneously contending with cost increases in…

The Switzerland Structure

The reference is to the Swiss trying to remain a political “island”, not getting too cozy with any one faction or regime. For businesses, the term you are probably familiar with is concentration.  To your value, look attractive to potential…

Make your business transferable

Transferabilty lends to sellability. Of course, no one is going to want to buy your business if it isn’t making money.  We all get that.  But for many of you, the problem isn’t making money.  You are successful. You know…

Hub and spoke

Warren Buffett, head of Berkshire Hathaway and famed investor, isn’t like most of us. In one way he’s not like us is that he’s already done all the things we’re talking about.  And another way he’s different than us is…

Valuation teeter-totter

I go to a lot of investment and business conferences. One conference I went to, in Chicago in about 2008, we had a discussion about key performance indicators, or KPIs, and how to best use them to measure and manage…

The Value Builder System

In helping business owners accelerate their value, we often utilize a powerful software tool called the Value Builder System.  Then, when it comes closer to selling, we act as your “financial quarterback” to coordinate with your other advisors.  But the…

Customer Satisfaction

Private equity firms are active acquirers, and they love to look at the Net Promoter Score. It focuses around one question: On a scale of 0-10 how likely are you to refer us to a friend or colleague? Those that…