How Much Do You Need to Sell Your Company for? The Goal: Lifetime Cash Flow

How Much Do You Need to Sell Your Company for? The Goal: Lifetime Cash Flow

 
 
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Brandon Wood is one of my partners in GEXP Collaborative. He has decades of financial experience and is a partner with Solidity Financial. Today’s topic is how to use your numbers to get the best possible exit option for your situation.

Many business owners tend to forget that their business fuels their lifestyle. Brandon shares how doing the research and due diligence for your business will show you if your post-sale income will maintain your current lifestyle. He discusses how to calculate the value gap for your business and how to shrink it. We also discuss outsized returns and how they affect value gaps.

Rushing to a sale is always a bad decision and Brandon helps us slow down and take the time to really be prepared for the negotiation phase.

What you will learn:

  • Brandon’s early career in finances.
  • How risk drives the need for understanding your numbers.
  • Observations Brandon has made about risk.
  • What is value gap?
  • How to cope with a large value gap.
  • The factors you need to consider when calculating your business’s value.
  • The process Brandon and his team take clients through for value calculation.
  • The variables that will affect a business’s value.
  • What are outsized returns?
  • What outsized returns mean for a value gap.
  • The problems that come up with a surprise offer.
  • How to optimize your exit options.

Takeaway:

Understanding your numbers is one of the most important things you can do. To get what you want out of the exit, knowing your numbers will make your options clearer.

Links and Resources:

GEXP Collaborative

About Brandon:

Brandon leads the operations and project management teams for GEXP Collaborative™. His management experience spans two decades, where he has directed multidisciplinary teams in treasury operations, risk management, compliance oversight and financial modeling. He helps bridge the elite strategies of our GEXP design team with the personal financial dynamics of each client. Brandon is also a partner at the family office firm Solidity Financial.