If you own a small business and want to expand, or if you are an individual who wants to own a small business, you may be tempted to create one organically. You might think that long term, an organic start-up will save you money; however, this is the furthest from the truth. Statistics show that only [...]
From a standing start, Dinesh Dhamija grew European online travel agency eBookers to more than one billion in sales in just five years. After two successful financing rounds, Dhamija still owned 40% of eBookers stock which represented virtually his entire net worth. Dhamija decided it was time to sell. He quickly got six acquirers interested, and [...]
Matt Slaine is an investor who grew up on Wall Street. In pursuit of his next move (and an intent to own), he decided to purchase a company, instead of starting one. What followed was a journey of identifying his perfect candidate (Progressive Business Media, a B2B media and communications company in the home furnishings and [...]
Cross selling new products and services to your existing customers may be a great marketing strategy, but if your goal is to increase the value of your business, the added revenue may do nothing for your company’s value – and may even lower it. In order to be acquired for a premium, consider committing to a [...]
James Roman founded iVelocity, a digital marketing agency for healthcare professionals. With a goal of getting on the Inc. 500 list, he wanted to scale quickly – and he did. Between 2013 to 2016 the company grew 10 times and increased its gross revenue by 1000%. …But it was the stress of a big company that [...]
Darby founded customer software consultancy Matched Pattern in 2017 but had become exhausted by the hamster wheel of constantly chasing new business to keep his consultants busy. As a project-based consultancy, Darby’s exit options were limited so he decided to swap his equity in Matched Pattern for shares in Matched Pattern, a company with a desperate [...]
One of the trickiest components of selling your business is deciding when to inform your employees that your business is for sale. The best answer is to wait until you’ve closed the sale and the money is in the bank. If you tell your staff your exit plans, they may start looking for work elsewhere. They [...]
Kristin Delwo co-founded Stacks, a software used by librarians. Though the software was still early in its life, Delwo wanted to scale quickly and decided to look for a deep-pocketed acquirer. Delwo was too early in her lifecycle to attract an all cash offer so agreed to sell her business putting much of her consideration “at [...]
Small businesses often operate as if their sole purpose is to fund the owner’s lifestyle, but the most valuable companies are run with financial rigor. You may be years from wanting to sell, but starting to formalize your operations now will help you predict the future of your business. Then, when it does come time to [...]
Would you consider selling your business to an employee? They’d probably fit the bill – good understanding of the business, passionate about your mission, and more likely to continue your legacy – but, they likely won’t have the cash to front such a large transaction either. When Lori Moen decided to step back from her business, [...]
