đź‘‹ Meet Zolid AI
Here to support your company's exit journey — Zolid AI can answer questions and provide insights. Free for now, with fair usage limits.
Your conversations are not shared with others. We may review them to improve Zolid AI.
Zolid AI may provide inaccurate info, so verify responses.
Building a Company with Transferable Value
No information listed yet. Be the first to add who benefits from this content.
Suggest who benefitsM&A 101: George Sandmann's 3 Tips for Building A Company With Transferable Value
No detailed summary yet. Suggest a summary to help the community.
Suggest summaryNo questions listed yet. Be the first to add a question for this topic.
Suggest questionGeorge Sandmann's advice for building a company that is transferable to a potential buyer.
Todd Sullivan (M&A Advisor and Host): George, can you give us your top three pieces of advice for business owners to really create that transferable value when going to sell their business? Absolutely. You know, transferable value is based on on being able to create credit. Credit just show up with credibility and to to show up with a low risk profile so that your your acquirer has high confidence in the future performance of your business.
George Sandmann (CEO of Growth Drive) So what should you do? Well, you need to have the people, the cash and the processes to create predictable cash flow, predictable, profitable cash flow. And then you need to have the people, the cash and the processes to create predictable, sustainable growth. And with those two, you will feel like you have built a very valuable business, but you need to go that next step.
And that next step is to make the purposeful connection between revenues and value. And it is not automatic. Just because the business is treating you well does not mean that an outside of the private capital markets will have that same confidence. You need to give them that confidence by focusing on business questions that you have probably never had to address as you grew the business.
So my my three pieces of advice would be, I really don't care if and when you want to sell the business, focus on transferable value, because high transferable value is typically found in a business that is profitable and delivering sustainable growth. Okay. To get outside advice, you can talk to your fellow CEOs. You can better get yourself an adviser who is who is has a vested interest in giving you the best advice they have.
And three. Make sure you have an effective senior leadership team. And that can be painful because you may have people you've been with for a long time who don't have the chops to take you from where you are today to where you need to be tomorrow. And and those are those are, you know, what are they called brave conversations.
You may have to have some brave conversations in the mirror and with with some people who, you know, you may have to have some tough conversations. So plan well in advance, get good advice, and ask yourself some questions about the business no matter how uncomfortable they are.
#entrepreneurship #buildingbusinesses #founderstory
No related episodes from this show yet.
About Exitwise
George Sandmann's advice for building a company that is transferable to a potential buyer.
Todd Sullivan (M&A Advisor and Host): George, can you give us your top three pieces of advice for business owners to really create that transferable value when going to sell their business? Absolutely. You know, transferable value is based on on being able to create credit. Credit just show up with credibility and to to show up with a low risk profile so that your your acquirer has high confidence in the future performance of your business.
George Sandmann (CEO of Growth Drive) So what should you do? Well, you need to have the people, the cash and the processes to create predictable cash flow, predictable, profitable cash flow. And then you need to have the people, the cash and the processes to create predictable, sustainable growth. And with those two, you will feel like you have built a very valuable business, but you need to go that next step.
And that next step is to make the purposeful connection between revenues and value. And it is not automatic. Just because the business is treating you well does not mean that an outside of the private capital markets will have that same confidence. You need to give them that confidence by focusing on business questions that you have probably never had to address as you grew the business.
So my my three pieces of advice would be, I really don't care if and when you want to sell the business, focus on transferable value, because high transferable value is typically found in a business that is profitable and delivering sustainable growth. Okay. To get outside advice, you can talk to your fellow CEOs. You can better get yourself an adviser who is who is has a vested interest in giving you the best advice they have.
And three. Make sure you have an effective senior leadership team. And that can be painful because you may have people you've been with for a long time who don't have the chops to take you from where you are today to where you need to be tomorrow. And and those are those are, you know, what are they called brave conversations.
You may have to have some brave conversations in the mirror and with with some people who, you know, you may have to have some tough conversations. So plan well in advance, get good advice, and ask yourself some questions about the business no matter how uncomfortable they are.
#entrepreneurship #buildingbusinesses #founderstory