| At least once a week a dealer will ask me
| |
| | point of having very little leverage to
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| what I think his business is worth. A
| |
| | negotiate or receive additional support
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| business broker friend of mine tells his
| |
| | because they demonstrate no loyalty in
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| clients that "your business is only worth
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| | return. In most cases, we recommend that
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| whatsomeone else is willing to pay for it
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| | dealers pare back the number of products
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| ... and that may be a whole lot less than
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| | and carriers they representas a means to
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| you thought." Concerns over decreasing
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| | INCREASE their sales and profitability.
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| values of wireless businesses are real
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| | Expenses
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| but don'thave to be cause for panic.
| |
| | Are your expenses in line with revenues?
|
| Unfortunately, the days of getting
| |
| | A major red flag goes up if yourtrend
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| multiples of revenuewith a cursory glance
| |
| | shows expenses growing faster
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| of the balance sheet are gone.
| |
| | thanrevenues. This signals trouble to
|
| The failure of so many "dot-coms" has
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| | potential buyers. Look at your key
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| given new meaning to the words,
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| | expenses as a percentage of revenues and
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| duediligence. The process has become much
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| | compare them with the last two years.
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| more complicated and the computations
| |
| | Keeping fixed and variable expenses in
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| much more intricate. The factors that now
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| | line is critical to business valuation.
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| determine the overall "worth" of a
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| | Revenue Areas
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| business in today's climate reach well
| |
| | Today, most buyers are interested
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| beyond the scope of the businesses'
| |
| | inbusinesses that are growing. If your
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| bottom line.
| |
| | sales and margins have been steadily
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| Our organization doesn't sell businesses,
| |
| | increasing, you pass the first test. Next
|
| but we do help them get ready to sell.
| |
| | comes alook at whether your manpower
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| The good news is that there are steps you
| |
| | levels are appropriate and productive.
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| can take to dramatically increase the
| |
| | Retention and experience counts too, as
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| value of your business. The criteria and
| |
| | expertise is valuable to both customers
|
| questions below represent a great
| |
| | and buyers of your business. What are
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| exercise for all businesses, regardless
| |
| | your "costs of sales" as a percentage of
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| of whether they are considering looking
| |
| | revenue? There are a lot of things you
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| for a buyer or not.
| |
| | can be doing to drive sales up in your
|
| We find that most businesses don't really
| |
| | operation from providing sales training
|
| know the answers to a lot of the
| |
| | to performing sales meetings. A
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| questions, but some can quickly double or
| |
| | management and motivation process similar
|
| halve the perceived value of their
| |
| | to the popular CDI Beat Your Best (TM)
|
| business in the mind of a potential buyer
| |
| | program demonstrates structure, measures
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| by putting some relatively simple
| |
| | results and adds value.
|
| practices into place. These items are
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| | Customer Base
|
| critical to the overall health of the
| |
| | One of your most valuable assets isyour
|
| business. When someone asks usto help a
| |
| | customer database. The number of "active"
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| business increase its net worth, we begin
| |
| | customers and the average value of a
|
| by looking at the following areas:
| |
| | relationship over time are key
|
| Profit & Loss Statements
| |
| | ingredientsfor determining the "worth" of
|
| Most financial analysts will look at the
| |
| | a business. Thus, the business with
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| "quality" of your data and "trends"
| |
| | processes and procedures for maintaining
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| overthe last two or three years to
| |
| | and growing customers over time are worth
|
| determine if your business is on the
| |
| | more. These are some of the most
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| rise, or on the"demise." First they'll
| |
| | important criteria for determining a
|
| look at the bottom line to see if there
| |
| | business's worth and we could certainly
|
| is one. Then they'll lookfor trends, and
| |
| | spend a lot more time on each category
|
| most importantly, if your net profit as a
| |
| | and how to build it. Other items such as
|
| percentage of revenue is rising or
| |
| | fixed assets, real estate, infrastructure
|
| falling. The final test is to determine
| |
| | and recurring revenue streams are also
|
| if the percentage is healthy enough
| |
| | important considerations. This outline
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| tomake a buy recommendation to a
| |
| | will provide you with the basis for
|
| potential purchaser.
| |
| | creating a written plan for improving
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| Portfolio of Products and Services
| |
| | each one of these areas. Buyers today are
|
| Do you have a mix of products that makes
| |
| | a lot more critical about the value they
|
| sense for your business? Is each category
| |
| | place on your business. The more you can
|
| profitable? Some dealers think they need
| |
| | do to impact each of these areas, the
|
| to carry every wireless carrier to be
| |
| | more your business will be worth to a
|
| able to serve the needs of every customer
| |
| | potential suitor. As my friendsays: "Your
|
| that calls or walks in. This is more
| |
| | business is worth exactly what someone
|
| often than not a very unprofitable way
| |
| | else is willing to pay for it." Now that
|
| for a dealer to go to market. Instead of
| |
| | you have a better look at what someone
|
| having an outstanding relationship with
| |
| | else will see, "what's your business
|
| one or two manufacturers or carriers,
| |
| | really worth?
|
| they diversify their business to the
| |
| |
|
