Sell, Buy, Grow - it's all about Value!

Sell, Buy, or Grow-
it’s all about Value!
by Brad Rice
Rice & Associates LLC

A separate website www.itsallaboutvalue.com
is devoted to the book, including ordering information.

Book is chiefly geared to business owners – whether selling, buying, or building a business. All readers will connect with the book's value improvement component.

Reviewer's Comments:

“The book is extremely well done – topics are well defined, explained, and summarized. There is no question this book is of value to anyone even thinking about the selling process, plus to owners in running their businesses. Very useful tool.” - Tom Schabel, CEO, Alexandria Extrusion

“I love the concept and content of the book. I believe it can be very helpful for anybody contemplating a sale of their business.” - Dave Senger, Chairman, Moss & Barnett

“I enjoyed the book. The content is very complete and an excellent educational tool using meaningful stories and illustrations with a progressing company case study (Pickleten) throughout the book. The book will be of great value to sellers, buyers, management personnel, professional advisors, and students." - Dick Letsche, Former Regional Managing Partner, McGladrey & Pullen

“Awesome! I especially like Rice’s stories, and the way he tracks the same company (Pickleten) throughout the book.” - Jim Haudan, CEO, Root Learning

Sample book topics:

Sample book excerpts

Building and increasing value
Driving price
Multiples
Recasting
Strategic buyers
EBITDA
Principled negotiation
80/20 rule
Value Audit Checklist
What if scenarios
Customer concentration
Key employee discount
Contingent pricing
Expectations
Deal structure
Working capital
Fair market values
Real estate
Deal price
Taxes
Marketplace competition
Percentage of completion
Timing
Emotions
Letter of intent and closing

The furniture guy said “Wait a second here," pointing out that the buyer was receiving a two million dollar unintended benefit!

In making income improvements, where do we get our biggest bang for the buck? Where’s the low-hanging fruit?

A 5% improvement in seller’s sales, cost of sales, and SG&A resulted in an EBITDA gain of $1,100,000, and a price increase of $6,000,000!

Recasting is the litmus test for earning a buyer’s trust and respect.

We all like to be associated with winners. Try this – ask someone how the local team did last night.

The million dollar question: who should be the recipient of the synergistic benefits?

The company had a very serious concentration issue: 50% of its sales were to one customer.

Our team’s attorney preferred option one, saying “A bird in the hand is worth two in the bush."

Here’s the key to this chapter and what potential sellers need to remember: reduce assets and debt.

This $700,000 doesn’t show up in the price, but seller’s walk away cash will increase by $700,000.

The owner received $19,500,000 for his business and real estate, versus preliminary offers that ignored the real estate’s worth.

The investment banker said, “You would retire, fish a little, play with your kids, take siesta with your wife, stroll to the village in the evenings where you could sip wine and play your guitar."

… a price variation of over $4,000,000.