Category: Maximizing Value

Maximizing exit value.

Maximizing Value

Selling A Business Can Increase the
Value 50+%

by Basil Peters | February 1, 2010 | 2 Comments

The effect of strategy on exit valuation is one of the most challenging concepts for investors and entrepreneurs to intuitively understand. I didn’t ‘get it’ until I was fifty. It’s not that I am slow to learn, it’s just that, like a lot of things in life, it takes a few dozen experiences before the lessons really sink in. When those experiences are about selling a business and each data point can take a year, it can take decades to accumula...

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Maximizing Value

Company Sales Need Multiple Bidders to Maximize Valuation

by Basil Peters | October 1, 2009 | one response

Companies are sold not bought

Many entrepreneurs think that when their company is ready to be acquired, a buyer will knock on their door and make an offer. This does happen, but less often than someone knocking on the door of your house asking to buy it. Even if an unsolicited offer does come in, boards should almost never approve a company sale when there is only one bidder because the price will almost certainly be too low. Even if the buy...

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