How To Measure The Value Of Your Business - With Tim Koller, Partner At McKinsey And Company
The number one question that Nick finds himself asked each day, is “How can I raise money?”, and “How can I increase the value of my business through investment?”.
Today’s guest is Tim Koller, a partner at McKinsey & Company and an expert on value creation and corporate strategy, who’s joined the show to discuss the all-important topic of valuation, and how you can put investment finance to the very best use, in order to see your business’s value soar.
Find out now if you’re building a high-value, exitable business (even if you have no immediate plans to sell it). You’ll get an instant PDF report with powerful insights specifically tailored to your business in just 4 minutes.
https://highvalueexit.scoreapp.com/
KEY TAKEAWAYS
Scale-up is certainly about leveraging finance and investment in order to be able to address more needs, to grow and to develop. But it’s also prudent to use your money wisely, and to make sure it’s being utilised effectively. What ultimately drives the cash-flow of a company is the combination of how fast it can grow its revenues, and what kind of return-on-capital it earns. The market is generally very smart about distinguishing companies based upon their performance. Those with faster growth prospects and higher returns on capital, will typically end up with higher multiples. In the current climate, businesses should be focussing upon ensuring that customers and suppliers are being well taken care of. A good investor will always bet on the business, and not you as an individual. Selling yourself is useless if you don’t have the correct economics behind your idea.
BEST MOMENTS
‘What ultimately matters is how big it can get and how profitable it can be’
’Do you bet on the jockey, or do you bet on the horse?’
‘It’s the strength of the brand that drives the cashflow’
‘An economy like this accelerates the decline of weaker businesses'
VALUABLE RESOURCES
Tim Koller at McKinsey - https://www.mckinsey.com/our-people/tim-koller#
Tim Koller LinkedIn - https://www.linkedin.com/in/timkoller/
Valuation - by Tim Koller (Amazon)
tim_koller@mckinsey.com
ABOUT THE HOST
Nick Bradley is a renowned entrepreneur, investor, speaker, and business growth expert.
His background is growing and scaling Venture Capital and Private Equity backed businesses globally. Over the last decade, he has completed 117 acquisitions and 25 business exits with a combined valuation of over $5bn dollars.
His mission is to help business founders build valuable businesses and create life-changing exits so they can realise freedom, wealth, and impact.
CONTACT METHOD
Nick’s Facebook page: https://scaleup.vip/FB
Nick’s LinkedIn: https://scaleup.vip/LI
Nick's Instagram: https://scaleup.vip/IG
Scale Up Your Business, coaching/consulting: https://suyb.global
