In Part 3 of Rizolve Partners’ Exit Planning series, Bob Carilla and Steve Cummings dive deep into the critical concepts of market dynamics, business positioning, and the “Value Gap.”
Many entrepreneurs have high expectations for their company’s valuation based on their personal financial wants and needs. However, the market evaluates a business strictly on how it presents itself to buyers. In this episode, we explain how to bridge the gap between your expectations and market reality, and why having a 3 to 5-year runway of preparation can help you double or even triple your company’s value before a sale.
In this episode, we cover:
The “Value Gap”: What it is and how expert advisors can help you close it.
Valuation Multiples: Why buyers look at 24 different value drivers—not just profitability and EBITDA—to determine what your business is worth.
Avoiding “Deal Killers”: How issues like high customer concentration, lack of a CRM, or a poor sales process can destroy your valuation or cause buyers to demand a massive discount.
The Time Function: Why a business transaction takes 6 to 12 months to close, but preparing a business for a premium sale takes years.
Whether you are looking to sell in a few months or a few years, understanding how the market thinks is the key to a successful and lucrative transition.
🔔 Make sure to subscribe so you don’t miss Part 4 of our series, where we will break down exactly what “preparedness” means from a buyer’s perspective!