TenX Venture Group LLC

Build your company as if you're going to sell - even if you have no intention of selling. An "exit ready" business: ?? Runs smoothly without the founder in the weeds on production ?? Runs smoothly without the founder as face of the company ?? Has reliable recurring revenue and multiple reliable acquisition channels ?? Has a diverse customer base (no single customer worth more than 10% of revenue) ?? Is profitable and growing with healthy cash flow ?? Has audit-ready financials aka clean books and regular scrutiny Build this, and you may not even want to sell. Build this, and you've created the freedom you thought you wanted by selling. Thinking of selling in the next 2-5 years? Apply for the TenX-It Ready Accelerator today: https://lnkd.in/ePYJMTmp #smallbusiness #M&A #accounting #bookkeeping #exitready

Do you need a business valuation to sell? Contrarian opinion: No. Let's draw a parallel to real estate. When you're selling a house, you don't get an appraisal. Your real estate agent, who knows the market and nuances, runs comps to come up with a listing price. The buyer, on the other hand, usually orders an appraisal because it's required by the lender. Business valuations are similarly estimates based off of: 1?? Industry multiple 2?? Whether you operate the business or have an operator (EBITDA vs SDE) 3?? Net profit (most industries, although some like accounting and SaaS are based off of revenue) Then there are dials and levers to rotate that estimate up or down. You can put these into two buckets: Opportunity and Risk Mitigation. Some big ones include: ?? Revenue growth over time ?? Recurring revenue ?? Customer concentration ?? Product and/or service mix ?? Customer acquisition cost ?? Cost of capital ?? Terms of sale (your price, my terms; my price, your terms) Want a super quick and dirty business value calculation? Take the TenX Business Value Calculator quiz: https://lnkd.in/eXmQ9MBM... #smallbusiness #exitstrategy #M&A #businessvaluation