Most owners were led to believe that the way to scale your business is to sweat it out and grow it with hard work.
We disagree!
That said… we are not disparaging the work ethic.
But what we are saying is that there’s an easier and faster way that enables you to scale exponentially.
In the current business landscape, we believe that following conventional wisdom is the path that leads you to the edge of the cliff.
Let your competitors behave like Lemmings…
But, before I give you the heads up, it’s important that you recognise the current situation.
Let's start with some statistics.
- 4.5 million businesses worth 10 Trillion US dollars will transition over the next 10 years – Source: EPI
- 50 million baby boomers will retire over the next 10 years – Source: Insurance retirement Institute
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12 million baby boomers own businesses – Source: Wealth Management Report
- 420k Boomer Businesses / year will transition every year for the next 10 years – Source: GenEquity Insights
AND YET…Statistics from BizBuySell show that
80% of businesses that attempt to exit will never sell!
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Only 20% of the businesses that go to market end up selling -Source: BizBuySell Insights, 2019
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And of the 20% that do sell, many of them will not sell for a price remotely close to what they are really worth.
- Forbes, BizBuySell and several other reputable sources report some of the top contributing factors for these tragic numbers include seller mistakes, setting the wrong asking price and having poor terms.
So, how can you make your business more valuable and more attractive to buyers
and scale it at the same time?
Take a look at the chart below.
The typical SME (Small-Medium Enterprise) EBITDA sales multiple is around 2.5x – Source: DealStats Value Brief.
This is illustrated in the blue rectangle.
This relates to the multiples of revenue a purchaser will pay for an owner-operator type of business.
Unfortunately, this is the hardest type of business to sell,
because nobody wants to buy a job.
By installing a professional management team, the multiple of revenues a buyer will pay increases to around 4.5 x annual revenue.
This is highlighted in the green area of the chart.
And if you increase your revenues to more than 10 million and achieve EBITDA in excess of 2 million, a private equity firm may pay you up to 15.2 x EBITDA.
That’s the red area on the chart below.
By the way, M&A activity is decreasing because of a lack of suitable businesses for acquisition.
15k US & 30k Global M&A deals closed in 2019. A decline of 15% /12% respectively – Source: IMAA Report.
Yahoo Finance reported today (February 2nd 2023) that M & A activity is at a historic low.
So, if you want to increase the exit value of your business, what should you do?
The first thing is to start thinking of your business as the product you will eventually sell, when you have grown its value.
And the smart move is...
stop doing whatever is not working the way you were told it would.
But first, here’s more on the situation...
Covid drove the whole world online and now you are in competition with people that have the same tech, the same access to the media yet have significantly lower overheads. They can slash their costs and survive on the smell of an oily rag.
If your current business depends on credit, there are two aspects to that which will affect you. Higher interest rates and less access to money from lending institutions. Lending criteria are being tightened here and all over the world.
And of course, consumers are cutting back on discretionary spending.
But this is not the end of the world. Instead, we see it as a huge opportunity to grow the customer base, profits, revenues and market share. And to make your business a target for acquisition when you choose to exit.
Here’s what we do
Here at Business Alchemy, we run breakthrough seminars where we teach you how to look at business differently, assess opportunities and develop a strong strategy and plan to execute over the next 12 months.
We give you strategies that enable you to slash overheads by up to 80%, 5 x your customer base and 5 x the average order value.
Those are big claims and we back them up...
We are so confident of the results you will get that we guarantee
..If you are not 100% satisfied that you got at least 10 times the value of your investment, we INSIST that you ask for a full refund on the spot.
In the USA, the investment for these seminars is 25,000 dollars. And they offer the exact same, 10 X guarantee. Our initial launch investment is more modest. Not because what we provide is any less valuable, but because our strategic goals are different.
Each one of our breakthrough seminars is designed to suit specific business needs. We can also create tailor-made seminars to suit the goals and outcomes you wish to achieve and to overcome stubborn challenges you may struggle with.
Click on the images below to find the Breakthrough Seminar that is the best fit for your needs.
For a limited time, our seminars are just $999 dollars for a 4 hour breakthrough session which you will leave with an actionable 12-month growth and scaling plan for your business. And remember we guarantee you will get an absolute minimum of 10 X the value of your investment.
Access to the breakthrough seminars is by application and places are very deliberately limited so you can get the maximum ROI.
We also offer a complimentary 1 hour seminar in which we will give you details on the 5 arbitrage opportunities you have right now, 10 of our 216 ways to acquire business assets with zero dollars out of pocket and 3 of our 63 ways to increase profits.