AH Advisory

Every business has a price and a market I've received numerous inquiries from clients and prospects who believe their businesses are too unique to be valued or sold. Most of these are entrepreneurs running small or medium-sized enterprises. My response to them is simple: every business, regardless of its size or type, has a value and a market. Let's explore these concepts further: valuation and marketability. Valuation Determining a business's value involves considering multiple factors, including its financial performance, primarily the projected cash flow it will generate over time. Additionally, the client portfolio, assets, reputation, licenses, product patents, management and workforce, market potential, and any other elements that could enhance revenue and financial returns must be assessed. There are various valuation methods tailored to different scenarios: ·?????Asset-Based Valuation: Calculates the net asset value by summing total assets and subtracting liabilities. ·?????Income-Based Valuation: Estimates value based on the business's future income potential, often using Discounted Cash Flow (DCF) analysis, which projects future cash flows and discounts them to present value. ·?????Market-Based Valuation: Compares the business to similar companies recently sold, using financial metrics like earnings or sales multiples. A simplified method for valuing small businesses considers the total income withdrawn by the owners in a calendar year. Marketability There is always a potential buyer for your business; the key is knowing how to find them. The "market" for a business refers to the pool of potential buyers and the demand for such enterprises. This encompasses several critical elements: Target Buyers: Identify companies seeking acquisitions for strategic reasons, such as expanding market share, entering new markets, or acquiring new technologies. Additionally, investors or private equity firms interested in businesses for financial returns are potential buyers. Market Conditions: Understand the supply and demand dynamics for businesses, the economic climate, and industry trends. Once we've determined the value of our business and identified potential buyers, the next step is to prepare the business for sale. This involves refining financial records, optimizing operations, and developing a compelling presentation to attract buyers. An effective marketing strategy is essential, leveraging brokers, online marketplaces, and networks to reach prospective buyers. Regardless of the business's size or industry, its worth can be quantified, and there is a marketplace of potential buyers who see its value. By following the right process, we can successfully find a buyer and complete the sale. For more information about M&A and selling your business, visit ahadvisory.net. #Entrepreneurship, #Leadership, #SMEs, #BusinessBrokerage, #M&A, #decisionmaking, #BusinessValuation

Understanding the risks we are running #Entrepreneurship, #Leadership, #SMEs, #BusinessChallenges, #riskmanagement, #decisionmaking, #transformation, #change, #startups

Our internal decision making process... #Entrepreneurship, #Leadership, #SMEs, #BusinessChallenges, #determination, #decisionmaking, #transformation, #change

We should not walk alone Sometimes, when confronted with the changes happening around us, we experience a sense of disorientation, as if we've lost our anchor—something that reminds us of who we are. Insecurity takes hold, and we lose sight of our capabilities. This feeling of instability often leads to an emotional paralysis, preventing us from choosing the path of change. Our decision-making process is influenced by cognitive biases that operate subtly within our reasoning, creating seemingly irrefutable logic that, in reality, masks excuses. These biases can either facilitate or hinder change. In those moments of internal crisis, we must turn to our loved ones—family, friends, and those dear to us. They are our strongest foundation, helping us remember who we are. We should talk, share, and open up about our feelings to those who know our worth and can assess the situation from an outside perspective. It’s crucial not to remain isolated during times of crisis. Change is fundamentally a human process and, therefore, relational. In every change, whether technological, physical, or procedural, a human being is always involved. Take, for instance, the extreme case of the storm of the century. While nature may cause devastation, the long-term impact on people's lives depends on human decisions and actions. How far are people willing to go? Relying on others is a fundamental human need that demands reciprocity. To achieve this, we must cultivate compassion—an openness and sensitivity to our own pain and that of others, coupled with the motivation to alleviate and prevent it. One person's needs are shared by others, and we all must embrace a spirit of generosity and solidarity, making ourselves available to those in crisis, even if we too are facing difficult times. As in the case of Daniel during the storm of the century, it's about upholding the three principles: solidarity to support others in overcoming adversity, persistence to keep going, and entrepreneurship to reinvent and start anew. For more information about managing a business crisis and transformation, visit ahadvisory.net. #Entrepreneurship, #crisismanagement, #Leadership, #SMEs, #BusinessChallenges, #determination, #resilience, #overcomingfailure #transformation

Transformation after a significant event #Entrepreneurship, #crisismanagement, #Leadership, #SMEs, #BusinessChallenges, #determination, #resilience, #overcomingfailure #transformation

How to prepare for recurring crises #Entrepreneurship, #crisismanagement, #Leadership, #SMEs, #BusinessChallenges, #determination, #resilience

We all have ups and downs.?Do we have what it takes to recover??Please, share your thoughts. #resilience, #overcomingfailure, #transformation

About how to transform failure What is failure, really? Let’s take a look. According to the Royal Academy, failure is defined as an “unsuccessful outcome, frustration, or unfavorable result of an initiative or enterprise.” The Spanish Academy also describes it as a “distressing, unexpected, and disastrous event.” The first definition focuses on the external result (like in business), while the second reflects the internal impact on the individual. You can't have one without the other; failure isn’t real unless we feel it. We’ll dive deeper into this feeling later. Historically, failure has been viewed from different angles. In French, fracasser means ‘to break violently into pieces,’ and metaphorically, ‘to interrupt.’ The earliest use dates back to 1588, referring to the Spanish Armada. In Spanish, the term appears in Don Quixote (1605), where it describes wrecking armadas. Over time, failure evolved from an induced harm to the harm itself. But just like crises, failure comes in different degrees. It could mean losing a project, a client, or even an entire business. Handling the failure of a specific initiative is different from dealing with the closure of a company due to bankruptcy. Both are painful, but not the same. Pain has two sides: learning and fear. Learning depends on how we approach challenges and failures. Fear is natural and shouldn’t be fought but controlled. It warns us to avoid risks, pushing us to be cautious and conservative. For entrepreneurs, transforming failure begins in the mind. It starts with analyzing and understanding the failure, extracting lessons, and immediately planning the next steps. Entrepreneurs are driven by courage and a proactive attitude. Plan B begins with this relentless mindset and the resilience to keep moving forward. Closing the chapter on failure (legally and financially) and opening a new one is essential. Living with courage means constantly reinventing ourselves, overcoming difficult moments, and emerging stronger from adversity. If we learn to move past frustration and reinvent ourselves, we are never truly defeated, even in the face of hardship. For more information or assistance in managing a business crisis, visit ahadvisory.net. #Entrepreneurship, #crisismanagement, #Leadership, #SMEs, #BusinessChallenges, #determination, #resilience, #overcomingfailure.

A fabulous story of resilience and determination Nikola Tesla was a prominent figure in the world of entrepreneurship and undeniably an icon of innovation. He patented more than 280 inventions and was recognized as one of the geniuses of creative engineering, alongside Marconi and Edison. In addition to his inventive and creative spirit, Tesla possessed a remarkable ability to recover from adverse situations, demonstrating resilience that was second to none. Tesla, a brilliant inventor and scientist, is renowned for his groundbreaking contributions to electrical power systems and related technologies. Although he wasn't known for crisis management, he faced moments in his life that could be considered crises. One notable incident occurred in March 1895 when his New York laboratory caught fire, destroying invaluable experiments and equipment. The loss was a devastating setback, erasing years of painstaking research. Yet, Tesla's resilience shone through as he refused to give up. He swiftly began rebuilding his laboratory and pressed on with his research, exemplifying his unwavering determination. Rather than yielding to adversity, Tesla turned the crisis into an opportunity to rebuild and continue innovating in electricity and energy. The story underscores Tesla’s resilience and determination during tough times—qualities that are essential in crisis management, whether personally or professionally. Despite the obstacles, he persisted with his work, leaving an indelible mark on the history of technology. It begs the question: How many other brilliant innovators faded into obscurity due to a lack of resilience and the ability to recover? Another pivotal moment in Tesla’s life was his conflict with Thomas Edison, known as the War of the Currents. This was both a technical and commercial battle, with Tesla advocating for alternating current (AC) and Edison promoting direct current (DC) as the standard for electricity distribution. The crisis centered on the fight for dominance in the U.S. and global markets, with immense investments and reputations on the line. Tesla, backed by George Westinghouse, ultimately triumphed with the AC system, which proved far more efficient for long-distance electricity transmission. This victory had a profound impact on the electrical industry, shaping the way energy is distributed to this day. The key lesson from this 'crisis' in Tesla’s life is his perseverance and unwavering commitment to his vision, despite the formidable challenges he encountered. Although he wasn’t a crisis manager in the traditional business sense, his ability to overcome obstacles and ensure his vision triumphed in a fiercely competitive field serves as a powerful inspiration. For more information or assistance in managing a business crisis, visit ahadvisory.net. #Entrepreneurship, #crisismanagement, #Leadership, #SMEs, #BusinessChallenges, #determination, #resilience

The decision to become an entrepreneur is pivotal and warrants careful reflection.