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Recently, the President of NACVA stated:
Baby Boomers Statistics
Based on population demographics, it is reasonably estimated that Baby Boomers own approximately 67% of middle market businesses and will sell or otherwise dispose of (as opposed to abandoning) approximately 83% of them2 as they retire or die in the coming years. Assuming that most of these businesses will be disposed of when their owners reach age 65, more than 671,000 middle market businesses worth an estimated $2.47 trillion will be disposed of between 2011 and 2029 by Baby Boomers alone (or an average 35,000 middle market businesses a year). Exactly when this wave arrives will be determined not simply by Boomers’ ages but also by the economy, interest rates and other factors. There is no question, however, that the selling wave should begin shortly and steadily rise over the next 10-12 years, peak during the 2020s and taper off during the following 10-12 years. The other drivers previously mentioned-shortened business life cycles, one-world cross border M&A deals, and private equity capital seeking middle market business investments-likely will continue to influence middle market M&A throughout this period and beyond.
How does this effect your business? Consider an ideal business model while pondering upcoming changes.
Did you know a typical sales strategy brings to the bottom line income not necessarily earnings? Growth Concepts’ Advisors focus on earnings moves that bring a 3 times return. For example lets say a Business Owner invested $10,000 to increase sales. It worked. $25,000 was added to Gross Revenue. On the other hand what if the Owner invested $10,000 in an business value move focusing on earnings and came out with $25,000 earnings. That is $75,000 to her/his back pocket. Which risk would you take?
In the first scenario the Owner had a great margin of 50% and few expenses so ended up with about $5,000 in income. Where the second scenario came out of a business sale with $75,000 with the same investment. Again which strategy would you do? Depends on your situation right. Growth Concepts reviews your particular situation with a proprietary business value analysis. Ask one of our Associates about earnings.
We realize, no one knows your business quite like you do. But, even a fast food business with similar operations is different from the next. After a complimentary review, with specialized tools and a perspective of earnings we learn about your business and then apply principles and laws of business value to your particular situation – bringing your business closer to an “ideal business” model. We know an “earnings” return is three times that of typical sales strategies. Ask about a complimentary review or your particular situation.
Don’t get confused about a strategies not focused on value. Below is a short list of typical strategies:
MARKET SEGMENTATION
COMPETITIVE POSITIONING
DATABASE STREAMLINING
NETWORK DOWNTIME FIXING
BRANDING
FACILITATION
TIME MANAGEMENT
PRODUCT/SERVICE PRICING
SALES TRAINING
RECRUITMENT
Are your initiatives focusing on income? Earnings strategies have a 3 times return of typical sales moves. Why put energy and time into typical strategies?
FREE DOWNLOAD
Download 4 pages of powerful equity strategies(not typical sales or marketing strategies) in an “14 Unalterable Business Value Laws” below that add $$$ to your bottom line:
Find in this Introduction and Chapter 1:
Discover how earnings moves are different from typical sales strategies.
How do Business Brokers determine if a business is maximizing value or just running up the numbers?
Why would savvy investors want a business with an “ideal business” model?
What organizational structure and other components make-up an “ideal business” model?
Venture Capitalists and Angels view your Business on it’s ability to pay back the loan. Are you working on vital factors that influence business value?
Click to Download “14 Unalterable Laws of Business Value”
As a former State Champion Hockey player at Viewmont High School, David went on to graduate from University of Utah with a unique combination of business and communication education. He soon started brokering businesses at Business Resource Center of Utah. After one year he was elected to sit on a presidential committee for his quality transactions while also having more transactions than other agents. From there he learned how businesses work within a framework of business value.
He then went to Law school for a year to return back and start Target Software Inc. to develop best practice software tools that work along with business value. Earlier in his career, as he was brokering businesses he was asked, many times, “How do you increase business value?” This began his quest for assisting business owners to reach their business goals with business value in mind.
Later, inspired by the book “22 Immutable Laws of Marketing” he researched Business Owners’ and Business Brokers’ for ways to build business value. This study showed common initiatives known by some Owners and not others. He began further developing tools, testing, executing and training value-based business principles and laws in small, medium and large corporations, educational institutions and non-profit organizations. These principles and laws are in his upcoming book, “14 Unalterable Laws of Business Value”.
He now runs Growth Concepts LLC while residing in Provo, Utah assisting local, national and international businesses maximize business value for building Owner’s equity. Read More…
