|
Even if you have no immediate intention of selling this is the way to put your business into world-class high value. Discover how to score your preparation using the unique Strategic Sale Ready Index
"Most entrepreneurs never receive full value for the underlying potential in their businesses. They don't see the opportunities that they can create for a large corporation, fail to prepare the business properly for a sale and rarely develop the potential buyer relationships necessary to get the best price." |
|
||
|
A proactive strategic sale strategy would:
"Entrepreneurs that can show a large corporation how to generate hundreds of millions of dollars of revenue can secure unbelievable prices for their businesses. This process works in every sector and for every size business, even those making a loss, providing the strategic value in the business is used as a basis for a sale." Tom McKaskill is the world's leading authority on how to sell a business to a strategic buyer and sets out a systematic and pragmatic process in his new book. He draws extensively on his own experience as a CPA, entrepreneur and academic as well as his personal experience selling several businesses to large corporations to show entrepreneurs how to develop a winning strategy for maximising their sales value. Tom combines his personal and professional knowledge with examples from successful entrepreneurs and advice from professional advisors to create his unique Proactive Strategic Sale Strategy and his Strategic Sale Ready Index "Successful entrepreneurs understand that the strategic value in a business can be leveraged to create a very high price in a sale to a large corporation. It is not profit, revenue, or growth that is the key; it is the opportunity that is created for the buyer. The entrepreneur has to proactively create a situation where the buyer is willing to pay a high price to exploit that opportunity." In 12 crisp chapters, Professor McKaskill sets out his breakthrough process.
"Most entrepreneurs are frustrated when they know their business has great potential but they can't see how to leverage it into a sale. Now for the first time, they are empowered by a systematic and pragmatic process they can use to identify and build strategic value in their business, identify corporate buyers, manage the process of sale themselves and capture the maximum benefit from the years of effort that they put into their business. They will understand why a few small firms were sold for many millions of dollars and they will see how they can do that for themselves. Whether they proceed to sell their business or not, the process itself will have a very positive effect on their profitability and business resilience. "
Business value created through strategic value is not based on the current or potential revenue or profit of the business being sold. It is solely created by the acquirer who exploits the assets and/or capabilities of the acquired firm through their own resources. A strategic buyer uses their corporate size and capacity to replicate and scale the acquired asset or capability to generate a revenue level that the acquired firm may never reach. This book will fundamentally change your view of business valuation. It is a breakthrough approach that can often achieve valuations on sale of TEN to TWENTY times a conventional valuation. The process set out in The ULTIMATE DEAL 2 will enable the business owner to take control of the sales process to significantly improve the proceeds from the sale. This book sets out a practical and structured treatment of the elements of strategic business valuation and the various risk and value components that create a strategic sales valuation. It also sets out a proactive process that will enable the business owner to reduce risk, identify strategic value, develop a scalability capability and create a compelling business case for a strategic buyer. It is based on well documented examples and a proven strategy and incorporates the author's own strategic sales experiences and breakthrough insight into how strategic value can be used to increase sales proceeds. Entrepreneurs want to know how they can improve the valuation of their business and especially desire to take control of the process of selling the business where they can positively influence the outcome. This book empowers the business owner to take charge of the sales process and sets out a clear strategy that will substantially improve the sales value through a program of risk reduction, succession planning, strategic value improvement and buyer identification and engagement. The purpose of this book is to enable business owners to prepare their businesses for sale by showing them how the strategic value in the business can be exploited to increase value. It shows how the business needs to be structured to exploit the potential in the underlying assets and capabilities but also identifies how the business owner can proactively seek out and engage the best buyers. Whether the business owner has to sell, has an offer to purchase the business or desires to sell, this process will ensure that the maximum value is achieved for the business. Business value is not simply a multiple of average, historical or projected earnings. A business that has strategic value through intellectual property, deep expertise, brands, copyright or licensed rights can proactively use these to generate a significant value for the right buyer. However, this value is substantially wasted if the underlying assets or capabilities cannot be used by the buyer to generate significant revenue soon after the acquisition. The seller therefore has to create a platform from which the value can be exploited. This book sets out how the business owner can create such a platform. This breakthrough process has been validated by business advisors, successful entrepreneurs and leading professional services firms. The ULTIMATE DEAL 2 includes a Strategic Sale Ready Index which allows the business owner to score their level of sale preparation across the three major stages of a sale process; Awareness and Alignment, Strategy and Operations Management. The Index provides a step by step guide to the business owner to allow them to take charge of the sale process. The Strategic Sale Ready Index identifies to the business owner where they are in their sale preparation and then shows them what they need to do to improve their readiness for sale, which in turn should lead to a higher sale value. Most businesses fail to prepare adequately for sale often resulting in sale proceeds of a small fraction of what they could otherwise have achieved. Few business owners appreciate the importance of clearly identifying the buyer in advance and of preparing their business so that the right buyer is empowered to exploit the potential in the business, which in turn leads to a much higher price on sale. "Most business owners leave the task of selling their business to the last moment, often when they are in trouble, hand over the sales process to a stranger and then wonder why they achieve so little for a lifetime's work. If you understand how strategic value can be used by an acquirer, you can proactively set out to find the right buyer who can exploit it thus dramatically increasing your proceeds from sale. You need to identify who is the best buyer and create a sales activity where both the buyer and seller are very pleased with the outcome. But such a result does not come without a deliberate strategy which puts the business in the right shape. It is potential profits to the buyer that is the key to higher value, not historical or projected results. Thus any business with underlying strategic assets or capabilities can be structured to generate high profits in the hands of the right buyer" . The ULTIMATE DEAL 2 offers the business owner advice on - WHAT FACTORS INFLUENCE BUSINESS VALUATION? WHAT IS THE DIFFERENCE BEWEEN A FINANCIAL SALE AND A STRATEGIC
SALE? HOW DO I IMPLEMENT A STRATEGY TO REDUCE BUSINESS RISK
FOR THE STRATEGIC BUYER? WHAT ARE STRATEGIC ASSETS OR CAPABILITIES? HOW CAN I CREATE ADDITIONAL VALUE IN MY BUSINESS? HOW CAN I IDENTIY POTENTIAL STRATEGIC BUYERS? HOW SHOULD I CONSTRUCT AN EARN-OUT TO ACHIVE A HIGHER
SALE VALUE? WHAT EXTERNAL ADVISORS AND PROFESSIONAL SERVICES SHOULD
I USE TO ASSIST ME?
"After acquiring 4 businesses at bargain prices, I have
to say I'm glad this book wasn't released earlier. A must
read for anyone involved in either buying or selling businesses."
|
||||
 |
 |
|||
|
© Tom McKaskill 2007
|
||||