Comments on: I want to sell my business … http://7million7years.com/2009/12/07/i-want-to-sell-my-business/ How to make 7 million in 7 years ... Sat, 11 Feb 2012 22:32:23 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Adrian http://7million7years.com/2009/12/07/i-want-to-sell-my-business/comment-page-1/#comment-4126 Adrian Fri, 18 Dec 2009 03:24:39 +0000 http://7million7years.com/?p=3651#comment-4126 "it’s best to grow using cash generated by the business" ... and the only way to do that is to realize that the cash is not yours to spend! BTW: this is exactly how I raised the cash to take my business multinational :) “it’s best to grow using cash generated by the business” … and the only way to do that is to realize that the cash is not yours to spend!

BTW: this is exactly how I raised the cash to take my business multinational :)

]]> By: Mike Hunt http://7million7years.com/2009/12/07/i-want-to-sell-my-business/comment-page-1/#comment-4120 Mike Hunt Thu, 17 Dec 2009 12:55:28 +0000 http://7million7years.com/?p=3651#comment-4120 Watching several shark tank episodes, it is apparent that getting investors in is a terrible way to raise money (huge equity loss). It seems you get on to shark tank to hook up with someone who can help you dramatically grow the business by linking you into distribution or new sales channels. Otherwise it's best to grow using cash generated by the business. The way we are going to shop our company is by approaching several competing businesses and private equity guys and trying to get them into a bidding war, much like shark tank! -Mike Watching several shark tank episodes, it is apparent that getting investors in is a terrible way to raise money (huge equity loss). It seems you get on to shark tank to hook up with someone who can help you dramatically grow the business by linking you into distribution or new sales channels. Otherwise it’s best to grow using cash generated by the business.

The way we are going to shop our company is by approaching several competing businesses and private equity guys and trying to get them into a bidding war, much like shark tank!

-Mike

]]> By: How to value your business …- 7million7years http://7million7years.com/2009/12/07/i-want-to-sell-my-business/comment-page-1/#comment-4119 How to value your business …- 7million7years Thu, 17 Dec 2009 08:34:31 +0000 http://7million7years.com/?p=3651#comment-4119 [...] week I told you about a reader who thought that he wanted to sell his business, but pretty quickly realized [...] [...] week I told you about a reader who thought that he wanted to sell his business, but pretty quickly realized [...]

]]> By: Mike Hunt http://7million7years.com/2009/12/07/i-want-to-sell-my-business/comment-page-1/#comment-4091 Mike Hunt Fri, 11 Dec 2009 16:29:18 +0000 http://7million7years.com/?p=3651#comment-4091 WJ, The business is owned by private equity guys already- I was brought in as a hired hand last year to clean it up- increased the EBITDA by about $8-10 million over last year based on the full year forecast from the first 5 months of our financial year. We have a competitor about to go public so that will bring more information to the table on valuations- at the moment though, we are looking to probably sell to another private equity party. Don't want to reveal too much about the business for obvious reasons but valuations are tough in this industry since profits are made with big volumes of production and the industry is very cyclical. -Mike WJ,

The business is owned by private equity guys already- I was brought in as a hired hand last year to clean it up- increased the EBITDA by about $8-10 million over last year based on the full year forecast from the first 5 months of our financial year.

We have a competitor about to go public so that will bring more information to the table on valuations- at the moment though, we are looking to probably sell to another private equity party.

Don’t want to reveal too much about the business for obvious reasons but valuations are tough in this industry since profits are made with big volumes of production and the industry is very cyclical.

-Mike

]]> By: wj http://7million7years.com/2009/12/07/i-want-to-sell-my-business/comment-page-1/#comment-4087 wj Fri, 11 Dec 2009 05:44:29 +0000 http://7million7years.com/?p=3651#comment-4087 Mike, business your size should have a lot of bankers banging your door to act as your sales agent. Have you gotten any valuation from them on what your business might be worth? I think if they could wring more out of the buyers , it's well worth paying for their services. Probably good if you can share your million to hundred million story .. I sure can learn a few things from you! :) Mike, business your size should have a lot of bankers banging your door to act as your sales agent.

Have you gotten any valuation from them on what your business might be worth?

I think if they could wring more out of the buyers , it’s well worth paying for their services.

Probably good if you can share your million to hundred million story .. I sure can learn a few things from you! :)

]]> By: wj http://7million7years.com/2009/12/07/i-want-to-sell-my-business/comment-page-1/#comment-4086 wj Fri, 11 Dec 2009 05:40:46 +0000 http://7million7years.com/?p=3651#comment-4086 Adrain, Is your business in Australia called "PIS" ? AS CONSOLIDATION of the country's wealth management industry gathers pace, National Australia Bank is believed to be eyeing up financial planning firm Professional Investment Services (PIS), which is worth at least $250 million. Adrain,

Is your business in Australia called “PIS” ?

AS CONSOLIDATION of the country’s wealth management industry gathers pace, National Australia Bank is believed to be eyeing up financial planning firm Professional Investment Services (PIS), which is worth at least $250 million.

]]> By: Mike Hunt http://7million7years.com/2009/12/07/i-want-to-sell-my-business/comment-page-1/#comment-4083 Mike Hunt Fri, 11 Dec 2009 02:03:06 +0000 http://7million7years.com/?p=3651#comment-4083 I'm running a business thats about $104 million a year in revenue, generating $22 million a year in EBITDA. We have about $30 million in cash- I'm hoping we can sell for $170 million plus sweeping the cash to our bankers- but I don't think we would get more than 5-6 times our EBITDA on the sale. Time to shop around the potential buyers... -Mike I’m running a business thats about $104 million a year in revenue, generating $22 million a year in EBITDA. We have about $30 million in cash- I’m hoping we can sell for $170 million plus sweeping the cash to our bankers- but I don’t think we would get more than 5-6 times our EBITDA on the sale.

Time to shop around the potential buyers…

-Mike

]]> By: wj http://7million7years.com/2009/12/07/i-want-to-sell-my-business/comment-page-1/#comment-4055 wj Tue, 08 Dec 2009 14:00:12 +0000 http://7million7years.com/?p=3651#comment-4055 Adrian, I've got seller's remorse .. :( Subsequently, interest rates went down a lot and I believe I could have fetch a better price since WACC is lower and the company might be able to offer higher! I think at the current interest rate, I could try for $10mil and people will bite. Yah, it's a case of 100% ownership, 100% MY MONEY. So now I have to ensure I continue to grow my money thru' properties and stocks. Adrian, I’ve got seller’s remorse .. :(
Subsequently, interest rates went down a lot and I believe I could have fetch a better price since WACC is lower and the company might be able to offer higher! I think at the current interest rate, I could try for $10mil and people will bite.

Yah, it’s a case of 100% ownership, 100% MY MONEY. So now I have to ensure I continue to grow my money thru’ properties and stocks.

]]> By: Adrian http://7million7years.com/2009/12/07/i-want-to-sell-my-business/comment-page-1/#comment-4054 Adrian Tue, 08 Dec 2009 11:19:01 +0000 http://7million7years.com/?p=3651#comment-4054 @ WJ - "PE of 15 times.. which is around the industry benchmark for private sales of similar business". Hardly :) You did very well to make your $7mill. (assuming no partners to split it with) ... presumably a strategic sale to a corporate? @ WJ – “PE of 15 times.. which is around the industry benchmark for private sales of similar business”. Hardly :)

You did very well to make your $7mill. (assuming no partners to split it with) … presumably a strategic sale to a corporate?

]]> By: wj http://7million7years.com/2009/12/07/i-want-to-sell-my-business/comment-page-1/#comment-4053 wj Tue, 08 Dec 2009 09:24:56 +0000 http://7million7years.com/?p=3651#comment-4053 I sold mine which generate 500k profit annually at a PE of 15 times.. which is around the industry benchmark for private sales of similar business. I think the best is to get 3 business valuators to value your business and you could possibly get a range to work with. I sold mine which generate 500k profit annually at a PE of 15 times.. which is around the industry benchmark for private sales of similar business.

I think the best is to get 3 business valuators to value your business and you could possibly get a range to work with.

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