For What It's Worth: The Exit Strategies Blog

Insights, news and announcements for private business owners and their professional advisors

FOR WHAT IT’S WORTH: The Exit Strategies Blog

Selling a Business with Recurring Revenues

What percentage of your company’s revenue is recurring?  Many of my M&A brokerage clients are companies with naturally recurring revenues. Recurring revenue business models are attractive to strategic and financial buyers, for good reason. Recurring revenues are predictable, and require little or no ongoing sales effort. Buyers are interested in purchasing businesses where revenue is predictable, and […]

Do Your Business Emails Convey Professionalism?

Normally we blog about M&A or Business Valuation issues, but this week I want to address email effectiveness, a subject important to all business people considering the tsunami of email messages most of us receive each day (an estimated 121). I recently read an article from the Harvard Business Review that succinctly focused on important do’s […]

Case Study: How One Entrepreneur’s Advisors Enabled a Successful Estate Transfer

I recently had a client who wanted to transfer his medical distribution company to his son and retire with peace of mind — a common occurrence these days. Dad and his CPA requested an opinion of Fair Market Value to set the price for a transfer of stock. After I appraised the company (S corp.) stock at […]

Twenty Reasons to Know the Value of Your Company

Company owners and shareholders seek independent business valuations at various times for various reasons. Here are twenty situations in which you may want a business valuation: An owner has passed away and a valuation is required to settle the estate per IRS regulations. An owner is getting divorced and needs to have the company or their fractional interest valued […]

Employ a Recurring Revenue Model to Increase the Value of Your Business

Businesses with recurring revenue are generally more attractive and more valuable to buyers. Recurring revenue, simply stated, is the portion of a company’s revenue that is highly likely to continue in the future. An effective recurring revenue model creates a “stickier” relationship between the provider of a product or service and the consumer. Those businesses don’t have […]

Economic indicators help put the current U.S. economic climate in perspective.

I have four common gauges of U.S. economic activity that deserve a few moments of your attention today: stock market, interest rates, inflation and unemployment. Let’s look at graphs of each of these measures for a visual perspective on the state of our economy. Stock Market. The Wall Street Journal, Equities pg. B17, January 25, 2017 reported […]

Exit Strategies Grows Up!

Time flies when you’re having fun selling and appraising businesses. 2017 marks our 15th anniversary. I founded the firm in January 2002, in the wake of 9/11, coming off a 15-year management career in the industrial automation technology industry. Relying on my corporate merger and acquisition experience, financial training, and a passion for strategic deal-making; the founding was a classic […]

Early-Stage Start-up, Early-Stage Exit

You’ve built a world-class software solution, delivered to customers as a SaaS application or web service.  You’ve recruited a great team and created important intellectual property.  Customer retention is tracking well and the buzz is growing in your vertical market. Every new customer acquisition represents incremental recurring revenue and contributes directly to your bottom line – and the company […]

U.S. Manufacturing Gears Up

Here is some good news to start your year. The Institute for Supply Management announced yesterday that its PMI national manufacturing index came in at 54.7 for December 2016, which is up from 53.2 in November and is the highest monthly reading of 2016. (Any reading over 50 signals growth.) This latest Manufacturing ISM® Report On Business® […]

Ten Exit Planning Benefits

Someone’s sitting in the shade today because someone planted a tree a long time ago. — Warren Buffett Few would argue that a successful retirement takes more planning for a business owner than it does for other people. Whether you intend to transfer your business to family, management or a third party, an exit plan […]

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