With a white knuckle overtime finish to Super Bowl LI still engraved in our memories, I thought that a sports related topic would be appropriate for this month’s article. Sports can be an easy analogy for business in many ways. One must work hard to achieve results, and sticking to the fundamentals is the surest way to encourage long-term success. Fair play and honesty maintain industry integrity and provide the basis of productive competition. The speed of the game continues to increase the higher you progress in your industry.
In Super Bowl LI, we saw, yet again, that it’s more important how you finish the game than where things appear to be at halftime. The “end of the game” for most business owners is after all of their years of hard work, dedication, and perseverance are coming to an end and they look to sell. Most companies experience ups and downs throughout their life cycle (some more than others), yet what truly matters is the scoreboard, or value, of the company when the time to sell has come.
Unlike a football game, however, gauging the value of a company is more complicated than simply looking at the scoreboard. Value fluctuates based not only on the touchdowns and field goals scored, but the skillset of the players on the roster, the depth and accuracy of the playbook, the age and condition of the facility, and the quality of the competition are all part of the final equation.
Navigating through these and other items, accurately determining the value of the business based on current market conditions, and then negotiating definitive terms with potential buyers and lenders is no small task to simply be given to the head equipment manager or the star running back.
Our goal is to encourage our entire client base to compete passionately, fairly, and at the highest level throughout the full 60 minutes of their game with the goal of realizing maximum value when it is time to sell. When that time comes, we will help you to analyze all aspects of your business relative to a sale so that it’s you and your family that gets the “W” at the end of the game.
The majority of our business is derived from referrals. Please consider referring our services if you encounter a situation involving the potential purchase or sale of a business.
Best wishes for a healthy and prosperous 2017,
Ronald V. Chernak
Inspiring business relationships since 1982!
(Article previously published in our February 2017 Newsletter.)