Summary
In this episode, Adam and Steve discuss the importance of knowing the value of your business. They highlight that for many small business owners, a significant portion of their net worth is tied up in the value of their business. However, determining the value of a business can be challenging due to the lack of easily accessible information and the wide range of multiples used in valuation. They emphasize the need for business owners to have a clear understanding of their business's value in order to make informed decisions and plan for the future. The episode concludes with the offer of a free business valuation for listeners.
Takeaways - Knowing the value of your business is crucial for planning your retirement and making informed decisions.
- Determining the value of a business can be challenging due to the lack of accessible information and the wide range of multiples used in valuation.
- The trailing 12 months are critical in determining the value of a business, as potential buyers are interested in recent performance.
- Timing is important when selling a business, as external factors and the condition of the business can significantly impact its value.
- Scale your business with the end in mind and continuously work towards increasing its value.
Chapters
01:09 Importance of Knowing Business Value
02:01 Challenges in Determining Business Value
03:50 Accurate Representation of Business Value
04:48 Understanding Multiples and Business Value
06:17 Trailing 12 Months and Business Value
08:40 Timing of Selling a Business
09:36 Scale with the End in Mind
10:59 Takeaways
Episode Links:
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