Many business owners have spent a large portion of their lives building up their business, with much sacrifice from their family and friends. EndVision has a program to ensure the real value of this asset is maximised upon exit.
Every business should be sale ready. You never know when you may need to exit in a hurry, or when someone is going to knock on your door asking to buy, and it is to late to get ready once it has happened. We have a track record of achieving high multiples.
Many businesses represent the owners lifetimes work, and the price they sell for dictates the quality of retirement that can be achieved.
Our products are bespoke, unique, niche, and are not offered by accountants, brokers or valuers.
If you are interested in magnifying the value of your business, we are keen to talk.
After 20 years of buying, starting and selling businesses for ourselves, the EndVision team came together to share this expertise with other business owners.
The typical business sale process does very little to help a business achieve a high price. It focuses on educating sellers to have realistic expectations about what their business is worth. Unfortunately this creates an environment where businesses are sold at less than optimum value. It happens. Day in and day out.
We see so many people who have spent a lifetime creating their business. We believe they deserve more.
People often ask us Can you guarantee that your process works?. Our answer is if you were selling a house and it had no kitchen sink and a broken front door, would fixing those make it more valuable? Not necessarily, but highly likely.
But don’t take it from us – Click here to listen to people who have enjoyed the success we can bring.
The industry’s approach to value has been to use average multipliers. We strongly disagree for two reasons. Firstly the average of 1,1,1,1,1,1,2,2,2,2,2,3,3,3,5,7,13, is 2.94. What if your business should have been the 13? Secondly it is very unlikely that your business is average. Buyers are assuming so because your story has not been told.
There are many rules of thumb as to what a business is worth, but none of them stand scrutiny. Compare it to the housing market. Would you say all houses are worth 10% more than GV?
Instead of looking at a business and comparing its value with another semi-related businesses (that sold too cheap), we look at what options investors have. If you had $10Million , you could invest it in:
Property – long term return of 5-10%
Shares – long term return of 5-10%
Term deposits – 2-4%
Why would you sell your business, your money making machine, to someone for a price that allows then to get a 30% or 40% return. Why not get it into a situation where investors are happy with a 15% return?
Consider this. Many businesses on the stock exchange are capitalised at multipliers in the 30’s.
The difficulty is that very few people understand what the market typically pays more for.
Not systems. Not assets. Not leases. Not long serving staff. Not middle management.