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    Calving The Cash Cow

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    PNWBizBroker
    The document provides advice for potential business buyers based on a meeting between a seller and buyer. It summarizes that the seller's business is growing 15% annually with accelerating growth, profitable for over 10 years in a solid market. The buyer is a retired tech executive wanting to acquire a smaller company. Key points discussed are the importance of chemistry and shared values between buyer and seller, managing growth expectations by focusing on the existing business, understanding one's own knowledge gaps and getting help in weak areas, and ensuring the motivation for acquiring the business aligns with truly believing in its business model and industry.

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    Calving The Cash Cow

    Uploaded by

    PNWBizBroker
    41 views1 page
    The document provides advice for potential business buyers based on a meeting between a seller and buyer. It summarizes that the seller's business is growing 15% annually with accelerating growth, profitable for over 10 years in a solid market. The buyer is a retired tech executive wanting to acquire a smaller company. Key points discussed are the importance of chemistry and shared values between buyer and seller, managing growth expectations by focusing on the existing business, understanding one's own knowledge gaps and getting help in weak areas, and ensuring the motivation for acquiring the business aligns with truly believing in its business model and industry.

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    Key consideration for pursuing your next business venture.

    Original Title

    Calving the Cash Cow

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    The document provides advice for potential business buyers based on a meeting between a seller and buyer. It summarizes that the seller's business is growing 15% annually with accelerating growth, profitable for over 10 years in a solid market. The buyer is a retired tech executive wanting to acquire a smaller company. Key points discussed are the importance of chemistry and shared values between buyer and seller, managing growth expectations by focusing on the existing business, understanding one's own knowledge gaps and getting help in weak areas, and ensuring the motivation for acquiring the business aligns with truly believing in its business model and industry.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    41 views1 page

    Calving The Cash Cow

    Uploaded by

    PNWBizBroker
    The document provides advice for potential business buyers based on a meeting between a seller and buyer. It summarizes that the seller's business is growing 15% annually with accelerating growth, profitable for over 10 years in a solid market. The buyer is a retired tech executive wanting to acquire a smaller company. Key points discussed are the importance of chemistry and shared values between buyer and seller, managing growth expectations by focusing on the existing business, understanding one's own knowledge gaps and getting help in weak areas, and ensuring the motivation for acquiring the business aligns with truly believing in its business model and industry.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Am I ready for This?

    I hosted a meeting last night between one of my sellers and a potential buyer. Without going into too much detail the Seller is a very attractive opportunity - growing at 15%/yr. the past three years with the growth rate accelerating. !uite profitable more than "# years of history and a mar$et that is very solid. %he buyer is a recently retired technology e&ec. coming from a company that has grown more than tenfold through smart ac'uisition and growth. (e)s decided he)d li$e to parlay that action on his own smaller scale. If you)re considering ma$ing the *ump to owning your own firm there are a few insights that were refreshed last night I thought I would share. (ere goes+ 1. ,hemistry. - -o not underestimate the importance of .uyer/Seller ,amaraderie and e&perience. / successful business transfer is going to re'uire an ongoing open candid supportive dialog from both parties. -o you share common values0 Is there a mutual respect0 If not move on - this one isn)t your deal. 1. 2rowth e&pectations. - 3art of last evening)s discussions centered around future growth opportunities of which there are at least three defined viable paths. %he buyer seemed to want to pursue all three simultaneously. I cautioned him that the $ey element in growth strategy is to recogni4e the challenge is understanding how to enable the cash cow to calve. -on)t 5657 *eopardi4e the e&isting cash flow stream by over-reaching. %a$e a slow and steady approach. (is past employer too$ 18 years to grow ten-fold plus. -on)t lose sight of the fundamentals. ". 9now what you don)t $now. If you)ve never owned your own business when you slip into that chair it)s easy to become overwhelmed. Instantly you are supposed to be the :go-to: for everything - overall strategy ;inance decisions (iring <perations =egal issues . . . and the list goes on. Identify early on your personal strengths and competencies. In my e&ample the buyer is very capable in the areas of strategy I% 3rocess ;low and 2eneral .usiness. =ess so in the areas of operations and finance. ;ortunately for him one of the $ey players at the company who will remain if the sale goes through loves -and owns- the operations piece. (e)ll li$ely see$ assistance from a ban$er or ,3/ to come up to speed on the finance/accounting side. /s you identify your personal areas of wea$ness when you see$ help be sure to fully vet who you)re considering. >. %ap your soul. /s$ yourself the 'uestion :Why am I here0: If the reason you are attracted to this opportunity is you saw the cash flow and said ?internally@ :I want some of that: you)re li$ely in for disappointment. If on the other hand you said :I believe in the business model li$e the company)s core values and strengths have a basic understanding of the mar$et and industry and something about it stri$es a chord inside of you from your past then this could be the oneA /s this potential transaction moves forward I)ll do everything I can to insure the .uyer is fully informed help him with those $nowledge gaps - after all he)s never bought a business before - and ensure both sides are transparent. Bou may as$ why0 - aren)t you supposed to represent the seller0 <f course I am. .ut you see I learned long ago -from a personal sale - that the best way to have a happy seller long term is to have a happy successful buyer.

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