Selling Your Business For Maximum Value - With John Warrillow
John Warrillow founder of The Value Builder System and best-selling author talks to Nick about what it takes to build a value business for exit
He discusses the nuances that really make the difference to acquirers and why top-line revenue is important but only one of the metrics that make the difference when selling a business
This is a masterclass in understanding more about the elements that are valued by acquirers and how to effectively position your business when selling it
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
We’ve moved away from the transaction model to the reoccurring business model and this is reflected in the valuations of companies Low debt and low-interest rates currently mean there will continue to be pressure upwards The Value Builder System is driven by eight unique metrics which are proven to be important to acquirers Top line revenue growth is important but there are other metrics that make a difference Most SME’s sell lots of things to a small number of people, the valuable SME’s sell a few things to lots of people Growth potential is important because it’s about what the company can become in the future The Switzerland structure is about the company not being dependant on a particular supplier or customer The point to sell a company is when you reach the freedom point. The desire for personal freedom and independence is a common underlying thread The reasons owners regret making a sale are focused around push factors such as illness, you need to offset your push factors with pull factors Pull factors are the things you want to do when you have exited the business When you have lots of pull factors valuation is not the dominant factor When an acquirer purchases a business they write two cheques, one to you and one to fund the working capital of the business Having a positive cash flow cycle is an important part of the picture when selling a businessBEST MOMENTS
‘We are part of the subscription economy now’
‘If you sell a few things to lots of people you can build a valuable company’
‘The acquirer is toeing the start line of their journey when you are looking to exit they are looking to grow’
‘Savvy sellers are thinking about the narrative of their company’
VALUABLE RESOURCES
Scale Up Your Business – scaleup.vip/podcast
Join the free Scale Up Your Business community: scaleup.vip/community
Take the Predictable Growth Assessment™, to measure your current business performance and show you where to focus next to get to where you want to be: https://scaleup.vip/PredictableGrowthAssessment
BUILT TO SELL RESOURCES
Built to Sell Scale Up Your Business Resources
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
Work with Nick: https://highvalueexit.com
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Nick’s LinkedIn: https://highvalueexit.com/li
Nick’s Instagram: https://highvalueexit.com/ig