Business owners spend a lifetime building their business with the goal of selling it to fund a dream lifestyle and retirement. Far to often they are left disappointed when they find out that their business is worth twenty to fifty percent less than they thought, resulting in their retirement lifestyle being well short of expectations.
Business value is often based on a multiple of owner’s cash flow or profit which tends to be the owner’s main focus when building their business. However, there are several other factors besides financial performance that affects business value most business don’t consider.
In this episode, Tony Malyk explains the parity between building value in a business and a home. He will cover the three categories that drive the price of a home or business: (1) Fixer Upper (2) Fair Market Value (3) Strategic Buy, and how they can dramatically affect business value.
Tony will also cover the eight questions to ask yourself to determine if your business is a fixer upper and how you can fix it. Don’t wait until you decide to sell to maximize the value of your business. The time to start is right now!