Tom Hannon – Featured On Built To Sell

Tom Hannon – Featured On Built To Sell

Advisors, Buyer, Deal Book, Deal Structure, Due Diligence, Factors Affecting Business Saleability, Preparing to Sell Your Business, Sale Process, Tax Implications of Selling a Business, Transition, Valuation, Why Sell
From the Built to Sell Podcast Description of the Show - Tom Hannon started FPD to create and distribute niche publications. He grew the company to $3M in revenue over 18 months, when a family illness prompted him to reach out to acquirers. His company was valued at $2.1M and received four offers, but he ended up walking away with $1.5M. Hannon candidly shares why he left money on the table, and what he would do differently if he had a re-do. In this episode, you’ll learn: • One trick the acquirer played on Hannon that dramatically devalued his business • How Hannon used a third-party valuation to keep the price as firm as possible • When not to overplay your hand in a negotiation with an acquirer One reason…
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Justification for taking a vacation

Factors Affecting Business Saleability, Increase Your Business Value
A recent survey by The Sellability Score found companies that would perform well without their owner for a period of three months are 50 percent more likely to get an offer to be acquired when compared to more owner-dependent businesses. There is no better justification for taking a blissful, uninterrupted holiday than to see how your company performs in your absence. The better your company runs on autopilot, the more valuable it will be when you’re ready to sell. To gauge your company’s ability to handle your absence, start by taking a vacation. Leave your computer at home and switch off your mobile. Upon your return, you’ll probably discover that your employees got resourceful and found answers to a lot of the questions they would have asked you if you…
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CAUTION: DO NOT POKE THE GIANT 

CAUTION: DO NOT POKE THE GIANT 

Deal Structure, Factors Affecting Business Saleability, Preparing to Sell Your Business
On June 1, 2011, both Floyd’s Coffee Shops in Portland, Oregon were busier than usual. The regulars were elbowed out of the way by new customers visiting the store for the first time to redeem their coupon and get $10 worth of coffee for $3. This tempting offer was made because Floyd’s had been picked as the first-ever Google Offers “deal.” Google Offers is the company’s first baby step into the world of “social buying” style promotions where a special, limited time offer is made by a business hoping that the deal will spread virally and thereby introduce a new legion of customers to their business. Google, of course, did not invent the deal-of-the-day category; they were goaded into it after their generous $6 billion dollar offer to buy Groupon…
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8 Questions You’ll Be Asked When Selling Your Business

8 Questions You’ll Be Asked When Selling Your Business

Exit Planning and Its Benefits, Factors Affecting Business Saleability, Preparing to Sell Your Business, Sale Process
One of the most intimidating aspects of selling your business can be facing the barrage of questions during the various management presentations you’ll be doing for potential acquirers. Be prepared to be grilled on all facets of your operations.  Of course, every meeting will be different, but here are some questions you can expect to be asked when you’re in the hot seat: Why do you want to sell your business? It's a slippery question because if your business truly does have a bright future—and you want the buyer to believe that's the case—the obvious question is:  “Why do you want to sell it, and do would you want to sell it now?” What is your cost per new customer acquired? The potential acquirer wants to find out if you have…
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9 Warning Signs You’re a Hub-and-Spoke Owner

9 Warning Signs You’re a Hub-and-Spoke Owner

Exit Planning and Its Benefits, Factors Affecting Business Saleability, Strategy, Uncategorized
If you were to draw a picture that visually represents your role in your business, what would it look like? Are you at the top of a traditional Christmas-tree-like organizational chart, or are you stuck in the middle of your business, like a hub in a bicycle wheel? If so you are a hub and spoke owner. As anyone who has tried to fly United when O’Hare has been hit by a snowstorm knows, a hub-and-spoke model is only as strong as the hub. The moment the hub is overwhelmed, the entire system fails. Acquirers generally avoid hub-and-spoke managed businesses because they understand the dangers of buying a company too dependent on the owner. Here’s a list of nine warning signs you’re a hub-and-spoke owner and some suggestions for pulling…
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