The economy is picking up. I can tell because clients are starting to get bought or are buying other companies and these are typically for a premium above the industry-rate, usually some flat multiple of earnings.
The desire for any business owner at the point that they sell is to seek a price above the market rate. It’s part of a report card as to how you have run your business compared to your competitors, as demonstrated by what price a buyer is willing to pay for it.
We have always emphasized the importance of having a clear sales process that increases confidence that your growth wasn’t a result of luck but is the product of an asset in your business.
Recently I viewed some videos by a friend who I believe does a nice job in talking about the other things you have to develop and measure to achieve a premium if you sell your company. Enjoy.
Watch the videos here.