Ep 51: M&A Matters Part 1 - Valuing Your Business
As an entrepreneur, have you ever wondered about the finish line? What I mean by that is, do you know the actual value of the business you’re working so hard to build? In part 1 of this crash course on mergers & acquisitions, I’m going to teach you about 4 key things you can focus on to add more value to your business. I’m also going to go over the different ways business are valued, so you can know what’s best for you. Ready to build a business of real value? Let’s dive in.
4:04 - Today’s Moment of Truth - “Cleanse Me From My Sin” aka There are no shortcuts to a clean heart before God
8:22 - Why would you value a business? Here are the top reasons...
10:00 - How to value a business - Method #1: The discounted cash flow model
12:55 - How to value a business - Method #2: Market-based analysis
13:25 - How to value a business - Method #3: Assets & appraisals
14:00 - How to value a business - Method #4: Cost to build
15:48 - How to dramatically increase the value of your business using The Four Pillars of Excellence
16:26 - Pillar #1: Finance and accounting
16:54 - Pillar #2: Sales and marketing
17:12 - Pillar #3: Systems and workflow. Is my business based off my own skill or a trained team with well-documented systems?
18:10 - Pillar #4: People and culture. Is the value of my business identifiable? Is the value of my business transferable?