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Hi, Robert Hirsch from Freedom Factory here. One of the questions that we get most often is, what is my business worth? If you're like me, most entrepreneurs are so interested in growing their business that what it's worth doesn't really come up that often. I always focus on growing sales, and I figure if I grow sales, and I run it efficiently, the business is going to get better and it's going to be worth more. In general, that's right. But it doesn't answer the question of what it's worth. Most entrepreneurs say, okay, where do I begin? When I think of where do I begin, I always think of earnings.

A lot of people talk about EBITDA, which is for taxes, and that can be adjusted into the seller's discretionary cash flow. But you figure out how much your businesses is worth based upon how much it earns., and it depends. There's a lot of factors, what industry are you in, how long has it been around? Do you have a customer concentration issue? What that means is, do you get 80% of your sales from Walmart, or do you get no more than 20% from any one customer? There's a lot of intangibles that go into it. BUt if you have a smaller business, let's call it a million in earnings. In general, it's worth roughly three to five times earnings.

Now, that is super rough, and it gives you just kind of a thumbnail that you can use. And of course, we can answer it in more detail when we look at it, but what that means is, let's say you have a customer concentration issue, let's say you have, whatever it may be, you have some, you have some competitors that are taking business away from you aggressively, you're probably going to be on the bottom end of that. Now, if you have some intellectual property that's defensible, or if you’ve been around for an awful long time, or if you have some sustainable, competitive advantage, the way I like to think of it is how big is the moat around the business or how big is the moat protecting you? Then you're going to be on the upper side of that.
Additional Videos From Freedom Factory

What is the Most Undervalued Asset Class?

Don't Make The Single Biggest Mistake When Selling Your Business

Connect with Managing Partner Tyler Tysdal on Linkedin

So there's always a range, and the intangibles really take you up and down that range. Now, a big fear that a lot of entrepreneurs have is, what if I undervalue my business when I go to sell it and this is my largest asset? For a lot of people, they say the home is the largest purchase you're going to make.

Now, if you're an entrepreneur like me. That's not exactly true. It's your business and buying your business and selling your business, and you're trying to think specifically, Hey, how do I not leave money on the table. And conversely, you don't want to overprice it and get people not interested.

Contact Freedom Factory

Freedom Factory
5500 Greenwood Plaza Blvd., Ste 230
Greenwood Village, CO 80111
Phone: 844-MAX-VALUE (844-629-8258)
https://www.freedomfactory.com
https://g.page/freedom-factory-denver

Also, Follow Freedom Factory here

Best Business Brokers - video portfolio

Follow us on Twitter

Find us on Facebook.com

Connect on Linkedin

Youtube Channel

# data[].attributes.attachment_link.readable_text
Robert Hirsch from Freedom Factory, discusses the commonly asked question, " What is my Business Worth?", frequently asked by business owners, and people who want to start a business.

Listen to the podcast, watch the video, or read the transcript below.

What is My Business Worth?

Additional Videos From Freedom Factory
What is the Most Undervalued Asset Class? Don't Make The Single Biggest Mistake When Selling Your Business
Connect with Managing Partner Tyler Tysdal on Linkedin

Transcript - What is My Business Worth?

What is My Business Worth?

Hi, Robert Hirsch from Freedom Factory here. One of the questions that we get most often is, what is my business worth? If you're like me, most entrepreneurs are so interested in growing their business that what it's worth doesn't really come up that often. I always focus on growing sales, and I figure if I grow sales, and I run it efficiently, the business is going to get better and it's going to be worth more. In general, that's right. But it doesn't answer the question of what it's worth. Most entrepreneurs say, okay, where do I begin? When I think of where do I begin, I always think of earnings.

A lot of people talk about EBITDA, which is for taxes, and that can be adjusted into the seller's discretionary cash flow. But you figure out how much your businesses is worth based upon how much it earns., and it depends. There's a lot of factors, what industry are you in, how long has it been around? Do you have a customer concentration issue? What that means is, do you get 80% of your sales from Walmart, or do you get no more than 20% from any one customer? There's a lot of intangibles that go into it. BUt if you have a smaller business, let's call it a million in earnings. In general, it's worth roughly three to five times earnings.

Now, that is super rough, and it gives you just kind of a thumbnail that you can use. And of course, we can answer it in more detail when we look at it, but what that means is, let's say you have a customer concentration issue, let's say you have, whatever it may be, you have some, you have some competitors that are taking business away from you aggressively, you're probably going to be on the bottom end of that. Now, if you have some intellectual property that's defensible, or if you've been around for an awful long time, or if you have some sustainable, competitive advantage, the way I like to think of it is how big is the moat around the business or how big is the moat protecting you? Then you're going to be on the upper side of that.

So there's always a range, and the intangibles really take you up and down that range. Now, a big fear that a lot of entrepreneurs have is, what if I undervalue my business when I go to sell it and this is my largest asset? For a lot of people, they say the home is the largest purchase you're going to make.

Now, if you're an entrepreneur like me. That's not exactly true. It's your business and buying your business and selling your business, and you're trying to think specifically, Hey, how do I not leave money on the table. And conversely, you don't want to overprice it and get people not interested.

Getting to a really good market value is very important. It's essentially, how do you put the right team together and make sure that you're pricing it according to market conditions. There's a lot of intangibles that happen. For example, let's say the tax environment's going to change. Maybe we're going to have a new president this year, or maybe we're going to have some tax reform going through that's going to affect long-term capital gains. Well, that might make you want to close before the end of the year. And so sometimes when we have those artificial, either floors or ceilings, they really affect our market timing.

So we want to stay pretty focused on that. But in general, to me, there's appraisers and appraisers are really good for estate sales, for things where nobody's running it, but the problem with appraisal value, especially in small business, is nobody's willing to write a check for that.

So if an appraiser says, your business that makes $1 million is worth 5 million, and no one's willing to write a check for that, it doesn't do you a lot of good. So, for me, I buy and sell businesses full time. It's all I do. I would trust a full time business broker that all they do is focus on comparable sales in the last six months with businesses similar to yours.

And I would really focus on market data because almost nowhere else is market pricing more important than small business. The importance of a broker is pretty significant here because let's say you're selling your house and let's say you have the best broker in your area as opposed to an average broker.

Well, he might be able to get you five or 10% more. And the reality is the appraiser's going to come in and they're going to give you an appraisal value and you're not going to be able to sell it for more. So in some ways, real estate is more of a commodity, but businesses, for example, you can change for EBITDA to seller's discretionary cash flow.
If you have a range like we used before from three to five times earnings. If you can get a broker that gets you away from three and gets you towards five and your business makes $1 million, you just made a million and a half more with effective 23% tax rate. That's awesome. That's $1 million more in your pocket.

Or for example, sometimes I've worked with businesses that were in the wrong industry classification and maybe they started off there, but maybe they've evolved as your business has grown over the last five or 10 years to a totally different industry classification. So it's taking it to market, putting a story together, maximizing the sale of your business.

Those are the things that are really important when you think about selling it. I hope this is helpful for getting what it's worth. If you want to call us over at Freedom Factory or if we can give you any help whatsoever, we'd love to do it. Please hit like and subscribe. Thanks for watching and we'll see you soon.

Contact Freedom Factory

Freedom Factory
5500 Greenwood Plaza Blvd., Ste 230
Greenwood Village, CO 80111
Phone: 844-MAX-VALUE (844-629-8258)
https://www.freedomfactory.com
https://g.page/freedom-factory-denver

Also, Follow Freedom Factory here

Best Business Brokers - video portfolio
Follow us on Twitter Find us on Facebook.com Connect on Linkedin Youtube Channel
What is My Business Worth is Available on Youtube

Managing Partners at Freedom Factory

Robert Hirsch and Tyler Tysdal

# data[].attributes.attachment_link.description
Robert Hirsch from Freedom Factory, discusses the commonly asked question, "What is my Business Worth?", frequently asked by business owners, and people who want to start a business. Listen to the podcast, watch the video, or read the transcript below. What is My Business Worth?

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Hi guys. Robert Hirsch from Freedom Factory. And I want to talk to you about something really important and specifically what is freedom? And people talk about freedom all the time. It's our core value. It's in our company name. It's in our intro it's, or outro, it's our, it's our number one top of the list core value and freedom is one of those things that means different things to different people. So I wanted to define it at least as we see it for our fellow entrepreneurs. And so my short tried answer is freedom is being able to do what you want, with who you want, as often as you want. And that's only partially true.

But what freedom really is, is being able to make a choice every morning when you wake up, being able to be on point and on purpose, where purpose and passion really come together and understanding what that looks like. A lot of people think that freedom, they say, well, Robert, are you free? And I certainly defined myself as a free and sovereign man. They say, well, why are you doing Freedom Factory? Why did you do all these brokerages? Why are you doing the TV show on A&E and history? What's going on? And I think I define freedom differently than other people.

Some people that ask that question, they think that freedom means doing nothing. And the reality is, I'm up at my mountain house and it sure is beautiful and I love to come up here to get away and go fishing, but I couldn't do every day. I would be bored. And I would feel like if Robert fell in the forest, is it going to make a sound?

It's not what really drives me. I love to work. So when people think about freedom, they think it's disconnecting from everything that they love so that it doesn't matter anymore. And in fact, I think it's just the opposite. So when I think of freedom, I think of it. What is it that I have to do? What is it that I cannot do? What drives me? If you think about it like an oxen, right? An oxygen driving a cart, pulling a cart, it's got this big yoke over its shoulders and people think freedom. They just want to get all the yolks off of them. They want to fire their boss and they want to fire their customers and they wanted to do this. And that's almost the opposite of what I see freedom as.

What I see freedom as is, what do I have to do. What do I want to do with the rest of my productive life? What can I not do? What am I going to attach my yoke to? And so many entrepreneurs, they would come to me for consulting and to sell their business and they'd say, I have no idea how to do it. For me, it came down to who's my tribe? Well, it's people like us. It's the entrepreneurs in the world, and what can I do for them? I can help them stick the landing and put resources and time and money in their pocket, and change not only their family and their own destiny, but I can allow them to build what it is that they find most important.

As entrepreneurs, we're the builders and what is it that we need to do? And that to me is freedom. It's not how do I free myself of everything and just float alone in the ether. It's how am I free to wake up and help my tribe every day? Now, if you have any questions on this or anything else, why don't you give us a call at Freedom Factory. And thank you so much for spending your valuable time with me. Please hit like and subscribe. I'm Robert Hirsch. We'll see you soon.

Contact Freedom Factory
Freedom Factory
5500 Greenwood Plaza Blvd., Ste 230
Greenwood Village, CO 80111 Phone: 844-MAX-VALUE (844-629-8258)
https://www.freedomfactory.com
https://g.page/freedom-factory-denver

Also Follow Freedom Factory here
https://vimeopro.com/freedomfactory/freedom-factory
http://freedomfactory.libsyn.com
https://twitter.com/FreedomFactory7
https://www.facebook.com/Freedom-Factory-112201923642080
https://vimeo.com/freedomfactory
https://www.linkedin.com/company/freedomfactory
Available to watch on Youtube

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Today's episode of the podcast, Robert Hirsch from Freedom Factory, discusses What is Entrepreneurial Freedom?, and people who want to start a business.

Listen to the podcast, watch the video, or read the transcript below.

What is Entrepreneurial Freedom?

Additional Videos From Freedom Factory
How are Brokers Different from Investment Bankers? When is the Right Time to Sell My Business?
Transcript - What is Entrepreneurial Freedom?

What is Entrepreneurial Freedom? What does it mean?

Hi guys. Robert Hirsch from Freedom Factory. And I want to talk to you about something really important and specifically what is freedom? And people talk about freedom all the time. It's our core value. It's in our company name. It's in our intro it's, or outro, it's our, it's our number one top of the list core value and freedom is one of those things that means different things to different people. So I wanted to define it at least as we see it for our fellow entrepreneurs. And so my short tried answer is freedom is being able to do what you want, with who you want, as often as you want. And that's only partially true.

But what freedom really is, is being able to make a choice every morning when you wake up, being able to be on point and on purpose, where purpose and passion really come together and understanding what that looks like. A lot of people think that freedom, they say, well, Robert, are you free? And I certainly defined myself as a free and sovereign man. They say, well, why are you doing Freedom Factory? Why did you do all these brokerages? Why are you doing the TV show on A&E and history? What's going on? And I think I define freedom differently than other people.

Some people that ask that question, they think that freedom means doing nothing. And the reality is, I'm up at my mountain house and it sure is beautiful and I love to come up here to get away and go fishing, but I couldn't do every day. I would be bored. And I would feel like if Robert fell in the forest, is it going to make a sound?

It's not what really drives me. I love to work. So when people think about freedom, they think it's disconnecting from everything that they love so that it doesn't matter anymore. And in fact, I think it's just the opposite. So when I think of freedom, I think of it. What is it that I have to do? What is it that I cannot do? What drives me? If you think about it like an oxen, right? An oxygen driving a cart, pulling a cart, it's got this big yoke over its shoulders and people think freedom. They just want to get all the yolks off of them. They want to fire their boss and they want to fire their customers and they wanted to do this. And that's almost the opposite of what I see freedom as.

What I see freedom as is, what do I have to do. What do I want to do with the rest of my productive life? What can I not do? What am I going to attach my yoke to? And so many entrepreneurs, they would come to me for consulting and to sell their business and they'd say, I have no idea how to do it. For me, it came down to who's my tribe? Well, it's people like us. It's the entrepreneurs in the world, and what can I do for them? I can help them stick the landing and put resources and time and money in their pocket, and change not only their family and their own destiny, but I can allow them to build what it is that they find most important.

As entrepreneurs, we're the builders and what is it that we need to do? And that to me is freedom. It's not how do I free myself of everything and just float alone in the ether. It's how am I free to wake up and help my tribe every day? Now, if you have any questions on this or anything else, why don't you give us a call at Freedom Factory. And thank you so much for spending your valuable time with me. Please hit like and subscribe. I'm Robert Hirsch. We'll see you soon.

Contact Freedom Factory

Freedom Factory
5500 Greenwood Plaza Blvd., Ste 230
Greenwood Village, CO 80111 Phone: 844-MAX-VALUE (844-629-8258)
https://www.freedomfactory.com
https://g.page/freedom-factory-denver

Also Follow Freedom Factory here
https://vimeopro.com/freedomfactory/freedom-factory http://freedomfactory.libsyn.com https://twitter.com/FreedomFactory7 https://www.facebook.com/Freedom-Factory-112201923642080 https://vimeo.com/freedomfactory https://www.linkedin.com/company/freedomfactory
Available to watch on Youtube

Freedom Factory is a Nationwide Business Broker in Denver, Colorado

Managing partners include Tyler Tysdal and Robert Hirsch

# data[].attributes.attachment_link.description
Today's episode of the podcast, Robert Hirsch from Freedom Factory, discusses What is Entrepreneurial Freedom?, and people who want to start a business. Listen to the podcast, watch the video, or read the transcript below. What is Entrepreneurial Freedom? Additional Videos From Freedom Factory How are Brokers Different from Investment Bankers?

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Hi, Robert Hirsch from Freedom Factory, and I want to talk to you about something that has really allowed me to bend time and has really allowed me to make a difference when running my companies or my entrepreneurial companies. And I call it the stupid human trick. And I borrowed a bit of that from David Letterman watching his stupid animal tricks growing up.

As entrepreneurs, we usually have one thing that we do better than anybody else. And I've mentioned this in a few other videos, but, people really wanted me to spend more time on it and show you exactly what I'm talking about. So, as entrepreneurs, there's two things that really help, mentors and a peer group.

I've been a part of the time what was WYO and is now EEO or young entrepreneurs or entrepreneurs organization, a young presidents or YPO and also Tiger 21 but there's great groups to figure out of entrepreneurs and build that peer group and there's great mentors and there's a skill set to being a great mentor and also to being a great mentee, and this all adds into it.

And then you can also do a lot of self work and a lot of testing for cognitive or things that you think such as Myers Briggs or an enneagram or cognative, or things that don't change or instincts. The best test I've found for that is Kolbe and Kathy Kolbe has done a great job putting all that together.

And, and what's different about a cognative as opposed to a cognitive is it doesn't change if you take it, whether you're seven, 47 or 77 years old. But taking those tests, understanding what you're your best self is, and also getting an understanding of your shadow self or your stress self, and understand the triggers from when you go from one to the other can really help your efficacy, not just as an entrepreneur, but as a leader and a manager.

Getting really clear on that can really allow you to bend time. Or as I tell a lot of my consulting clients, I help entrepreneurs bend time. What does that mean? Right? So we're familiar with the 80/ 20 principle - 20% of what you do produces 80% of the results. Well, I think when you become an expert at something, it really turns into 95/5 but the way that works is, so let's say we'll just take 80/20 for simplicity of numbers, and let's say 20% produces 80% of your results.

If you can get rid of the other 80% of things occupying your time, maybe things that you're good at but not great at. For me, I'm a great leader but I'm a mediocre manager. I got rid of all my management. I've got great business partners that helped me with that, and I just focus on that 20% and if I could do that 20% five times, which is 100% of my time, I can create 400% of the value.

Now, if you subscribe to my line of thinking, which is 95/5 and 5% produces 95% of your value. Well, if you can get rid of the other 95% and just do that 5% 20 times, all of a sudden that's 1900% of your value, or almost 20 times. It's 19 times, almost unbelievable. The sharper you get there, the easier and the more effective you can be. I think about it almost like a video game. Now, when I grew up playing video games, I had an Atari, my controller had one button. I play games against my kids and there's 20 buttons and I'm not very good. So for purposes of this conversation, let's think about it as one or two buttons on the controller.

Like a Nintendo, and so you have the stock move, the move that everybody can do, kind of a button, punch or kick or jump. But every character has their special move or what I like to refer to as the B button. This guy breeze fire. This guy does a back flip. This guy does blankety blank.

But figuring out your stupid human trick is really figuring out your backflip. And once you figured out your backflip, stop doing everything else and just do your backflip over and over and over again, and you can produce disproportionate results in your company. And that's really how you can shift the line.

And instead of growing at 10% or 15%, you're growing at a hundred or 150%. So again, figuring out the one thing that you do better than anyone else provides tons of value to your company. It'll make you a better leader. It'll make you a better entrepreneur. If you have any questions on this, why don't you give us a call it Freedom Factory.

Thank you so much for watching. Please like and subscribe and we'll see you soon.

Contact Freedom Factory

Freedom Factory
5500 Greenwood Plaza Blvd., Ste 230
Greenwood Village, CO 80111
Phone: 844-MAX-VALUE (844-629-8258)
https://www.freedomfactory.com
https://g.page/freedom-factory-denver

Also, Follow Freedom Factory here

Best Business Brokers - video portfolio

Follow us on Twitter

Find us on Facebook.com

Connect on Linkedin

Youtube Channel

# data[].attributes.attachment_link.readable_text
Robert Hirsch from Freedom Factory, asks, What is Stupid Human Trick? Entrepreneurs all have several skills but they need to focus their time on the one skill that makes them all of their money.
Listen to the podcast, watch the video, or read the transcript below.
Additional Videos From Freedom Factory
How do I sell my business? When is the right time to sell your business?
Transcript for podcast

Hi, Robert Hirsch from Freedom Factory, and I want to talk to you about something that has really allowed me to bend time and has really allowed me to make a difference when running my companies or my entrepreneurial companies. And I call it the stupid human trick. And I borrowed a bit of that from David Letterman watching his stupid animal tricks growing up.

As entrepreneurs, we usually have one thing that we do better than anybody else. And I've mentioned this in a few other videos, but, people really wanted me to spend more time on it and show you exactly what I'm talking about. So, as entrepreneurs, there's two things that really help, mentors and a peer group.

I've been a part of the time what was WYO and is now EEO or young entrepreneurs or entrepreneurs organization, a young presidents or YPO and also Tiger 21 but there's great groups to figure out of entrepreneurs and build that peer group and there's great mentors and there's a skill set to being a great mentor and also to being a great mentee, and this all adds into it.

And then you can also do a lot of self work and a lot of testing for cognitive or things that you think such as Myers Briggs or an enneagram or cognative, or things that don't change or instincts. The best test I've found for that is Kolbe and Kathy Kolbe has done a great job putting all that together.

And, and what's different about a cognative as opposed to a cognitive is it doesn't change if you take it, whether you're seven, 47 or 77 years old. But taking those tests, understanding what you're your best self is, and also getting an understanding of your shadow self or your stress self, and understand the triggers from when you go from one to the other can really help your efficacy, not just as an entrepreneur, but as a leader and a manager.

Getting really clear on that can really allow you to bend time. Or as I tell a lot of my consulting clients, I help entrepreneurs bend time. What does that mean? Right? So we're familiar with the 80/ 20 principle - 20% of what you do produces 80% of the results. Well, I think when you become an expert at something, it really turns into 95/5 but the way that works is, so let's say we'll just take 80/20 for simplicity of numbers, and let's say 20% produces 80% of your results.

If you can get rid of the other 80% of things occupying your time, maybe things that you're good at but not great at. For me, I'm a great leader but I'm a mediocre manager. I got rid of all my management. I've got great business partners that helped me with that, and I just focus on that 20% and if I could do that 20% five times, which is 100% of my time, I can create 400% of the value.

Now, if you subscribe to my line of thinking, which is 95/5 and 5% produces 95% of your value. Well, if you can get rid of the other 95% and just do that 5% 20 times, all of a sudden that's 1900% of your value, or almost 20 times. It's 19 times, almost unbelievable. The sharper you get there, the easier and the more effective you can be. I think about it almost like a video game. Now, when I grew up playing video games, I had an Atari, my controller had one button. I play games against my kids and there's 20 buttons and I'm not very good. So for purposes of this conversation, let's think about it as one or two buttons on the controller.

Like a Nintendo, and so you have the stock move, the move that everybody can do, kind of a button, punch or kick or jump. But every character has their special move or what I like to refer to as the B button. This guy breeze fire. This guy does a back flip. This guy does blankety blank.

But figuring out your stupid human trick is really figuring out your backflip. And once you figured out your backflip, stop doing everything else and just do your backflip over and over and over again, and you can produce disproportionate results in your company. And that's really how you can shift the line.

And instead of growing at 10% or 15%, you're growing at a hundred or 150%. So again, figuring out the one thing that you do better than anyone else provides tons of value to your company. It'll make you a better leader. It'll make you a better entrepreneur. If you have any questions on this, why don't you give us a call it Freedom Factory.

Thank you so much for watching. Please like and subscribe and we'll see you soon.

Contact Freedom Factory

Freedom Factory
5500 Greenwood Plaza Blvd., Ste 230
Greenwood Village, CO 80111
Phone: 844-MAX-VALUE (844-629-8258)
https://www.freedomfactory.com
https://g.page/freedom-factory-denver

Also, Follow Freedom Factory here

Best Business Brokers - video portfolio
Follow us on Twitter Find us on Facebook.com Connect on Linkedin Youtube Channel
You an also watch this video on Youtube

Managing Partners at Freedom Factory

Robert Hirsch and Tyler Tysdal

# data[].attributes.attachment_link.description
Robert Hirsch from Freedom Factory, asks, What is Stupid Human Trick? Entrepreneurs all have several skills but they need to focus their time on the one skill that makes them all of their money. Listen to the podcast, watch the video, or read the transcript below.

# data[].attributes.body
Hi, Robert Hirsch from Freedom Factory here. And one of the questions that we get most often is, how do I sell my business? A lot of entrepreneurs, they ask this question. And I remember the first time I sold my business, I sold that through an investment banker in New York. And I learned this really important lesson.

Bankers don't speak entrepreneur and entrepreneurs ure don't speak banker. This was a different type of guy. He just wanted me to grow it  and the way he sold it, and I'm not 100% sure, I think he called five or 10 guys that he went into business school with and his list of usual buyers., and he sold it to them. When I look back at it, I realized, I sold it way under what I could've sold it for, and I left a lot of money on the table. If I went back to do it again, that certainly isn't the way I would do it. So anyway, long story short, fast forward here and I've started three of the largest brokerages.

I've hosted a TV show on  A&E and history on selling businesses, and all I do is help entrepreneurs sell their business. The number one thing that really drives the sales price is deal tension. Right? And so there's a couple of ways to think of it. One, you want to get as many interested parties as you can before you get into the LOI phase or the letter of intent phase.

Two, you want to get them to raise their hand at the same time, right? So if you have, if you have two buyers at the same time, they're going to be competing for your business and there's only one, and ultimately that's going to drive up the value for you and your business and your family. If you have two buyers at different times, that doesn't affect it at all, right? It doesn't give you, you know, the deal tension. If you have one guy or gal that wants to buy your business and you have another one three months later, that doesn't help you. So how do you run a process and how do you get buyers to fit to your timeline as opposed to you trying to fit to their timeline?

That's what an exceptional broker will do. They're going to create deal tension. They're going to get people interested. I'll give you an example. One of the things that we do is when we do a a month where we do questions and answers before we give any management meetings with the entrepreneur and what that does, let’s say a buyer sends in six questions and we send back 92 responses.

They say, well, why'd you send me 92 responses? I only asked six questions. Well, the answer for that is really simple. We want to give everybody the same information to put forth their best letter of intent or LOI, and it also psychologically readjust the buyer's thinking to understand that this is going to be a competitive deal.

They're not going to be able to steal your business. And two, there are other people interested and this is a valuable commodity. So our whole process is designed like that all the way through because anybody that's been doing this for any period of time is going to understand that time kills deals.

And what we want to do is drive it through. Have the buyers fit to our process and we want to run it as smoothly as we can. And that's why we do 147 day process here at Freedom Factory where most businesses, not all, it depends. Sometimes businesses are more complex or a little bit larger, but we really try and drive it through and 147 days, which is, pretty exceptional, when it can go from agency agreement to getting the biggest check of your life in five months. So anyway, I went in a little bit more detail on that, but specifically, finding the right broker is so critical. One other thing is some brokers are like real estate agents or transaction brokers.

They're going to represent both sides. They're going to represent sellers or buyers. At Freedom Factory, all we do is represent sellers. All we do is get the maximum price for the business. We don't represent buyers. We don't take both sides of a deal. We don't recuse ourselves. We just are in the entrepreneur's corner.

That's the reason that we get up every day. So a couple of other quick questions on selling your business. How do you find a buyer? And I'll tell you a little bit about what we do. We advertise through 27 different channels online, which is good. We go through all the databases.

We find strategic buyers. We do an outbound campaign, and we synchronize that to the inbound campaign. But we also do a marketing campaign for your business. We put together a video, a sizzle reel. We put marketing dollars behind that and we get as many people interested as we can.

One other quick question, right? So let's say we go through the process, we create deal tension. We get you an LOI that you're ecstatic with. And ultimately you control the deal. You control whether it makes sense for you or not to sell it. But a lot of entrepreneurs say, how do I know if I'm doing it right?

Maybe my contracts and you get into the nitty gritty and the contracts are one of those things that if you haven't seen a lot of them, either a stock purchase agreement or an asset purchase agreement, if you haven't seen a lot of them, there's a lot of little things that can kind of sneak in there that really affect the sales price.

And that's why you want an exceptional broker in your corner. That's why you want someone, and again, I'm not an attorney, I see a lot of contracts. We certainly recommend using a transaction attorney, but also we can understand what standard, what's not, what's typical, what's atypical. And we can point that out to you.

And as you go through the negotiations, part of it isn't just finding the highest price. Part of it is finding the perfect fit. And what I've found is the more people that are interested, then the more letters of intent you get, then it allows us to define just the right buyer and allows us to find the perfect fit for you.

So if we can help you out with this or anything else, please give us a call at Freedom Factory. Please hit like and subscribe. Thanks for watching and we'll see you soon.

Contact Freedom Factory

Freedom Factory
5500 Greenwood Plaza Blvd., Ste 230
Greenwood Village, CO 80111 Phone: 844-MAX-VALUE (844-629-8258)
https://www.freedomfactory.com/
https://g.page/freedom-factory-denver

Also Follow Freedom Factory here

https://vimeopro.com/freedomfactory/freedom-factory

http://freedomfactory.libsyn.com

https://twitter.com/FreedomFactory7

https://www.facebook.com/Freedom-Factory-112201923642080

https://vimeo.com/freedomfactory

https://www.linkedin.com/company/freedomfactory

https://www.youtube.com/channel/UCXUrv3qYNsR8NjZEWRDch5Q/

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When is the Right Time to Sell My Business

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When is the Right Time to Sell My Business

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Hi Robert Hirsch from Freedom Factory here. And I want to talk to you about a really important subject and when is it the right time to sell your business? This question has a bit more art than it does science. And ultimately it's kind of a gut check of what you know.  We're outside. This is the backyard of my mountain house and is kind of my happy place.

The first thing I'm going to suggest to you is get a change of scenery. Get out of the office. Get out of the commute, either with your family or away. Now figure out some place that you can go, whether you love to fish or ski or go to the mountains or go to the beach and whatever it is, just go somewhere and change your location, and get somewhere you feel really comfortable.

And then think about your business. And I look at it and I think about it in three questions. First, am I here and am I clear? Am I really into my business? Am I serving my business or does my business serve me? And I think life is too short to live where you serve your business. Your business is your personal vehicle to more freedom and more wealth.

And the way I define freedom is pretty simple - it's doing what you want, when you want, as often as you want, with whom you want. And if you love what you're doing and you think, God, this is amazing, and I am here and I am clear and I'm doing exactly what I'm supposed to do, which is the way I look at selling businesses for fellow entrepreneurs, then that's awesome.

And it's not time to sell your business. If you're not sure about that, I would think a little bit harder, and I would dive in and say, do I have the right vision? Do I have a clear vision on where

I'm going to take my business in the next one, two, three, maybe even five years? What do I need to do in order to resolve it and feel great, and feel like I've accomplished what I've accomplished? Now, if your business is growing 40% a year or 50% a year, you probably have a clear vision. You're probably executing really well and you probably feel in flow. On the other hand, if you've been growing at 5% for the last five years, well that's a little bit more difficult, and perhaps somebody else can do it better than you.

Whenever my business is growing at 5%, I'm looking to sell. I'm saying, okay, I need an operator. I'm more of a strategic guy. And how do we focus on really creating something that is amazing, where you're on point and on purpose, but your growth rate will be a big indicator of that.

And the final thing is, you have done what you came to do if you, if you went into your business, when I came to the business brokerage business, i knew I wanted to change the way that entrepreneurs buy and sell businesses. I've started three of the largest brokerages. I hired, one of them, or I've acquired them to get the people, and I've really made it a much more efficient market. And that's what I set out to do when I came here.

But if you left your current business and think about this for a second, would you feel resolved or would you feel like you didn't finish the job you came there to do. So I looked back at it and I say, okay, is my business serving me. Am I clear and engaged every day?

Do I have anything left to accomplish and do I have a fresh set of ideas to really implement that vision? These are the things that walk you through it. It's a bit of an imprecise science, but overall it's really a gut check. What do you think? Do you think it's time to sell your business?

Because usually if I think about selling it, it's about six months too late. So if you have any other questions on this or anything else, it would be our privilege to help here at Freedom Factory. So just give us a call, please like and subscribe. I'm Robert Hirsch. Thank you for watching and we'll see you soon.

Contact Freedom Factory

Freedom Factory
5500 Greenwood Plaza Blvd., Ste 230
Greenwood Village, CO 80111 Phone: 844-MAX-VALUE (844-629-8258)
https://www.freedomfactory.com/
https://g.page/freedom-factory-denver

Also Follow Freedom Factory here

https://vimeopro.com/freedomfactory/freedom-factory

http://freedomfactory.libsyn.com

https://twitter.com/FreedomFactory7

https://www.facebook.com/Freedom-Factory-112201923642080

https://vimeo.com/freedomfactory

https://www.linkedin.com/company/freedomfactory

https://www.youtube.com/channel/UCXUrv3qYNsR8NjZEWRDch5Q/

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In today's podcast Robert Hirsch answers the question "When is the Right Time to Sell My Business?"

Watch video, listen to the podcast, or you can also read the transcript below.

Freedom Factory, The World's Best Business Brokers

When is the Best Time to Sell My Business

Additional Videos: How Do I Sell My Business

Transcript for - When is the right time to sell my business?

Hi Robert Hirsch from Freedom Factory here. And I want to talk to you about a really important subject and when is it the right time to sell your business? This question has a bit more art than it does science. And ultimately it's kind of a gut check of what you know. We're outside. This is the backyard of my mountain house and is kind of my happy place.

The first thing I'm going to suggest to you is get a change of scenery. Get out of the office. Get out of the commute, either with your family or away. Now figure out some place that you can go, whether you love to fish or ski or go to the mountains or go to the beach and whatever it is, just go somewhere and change your location, and get somewhere you feel really comfortable.

And then think about your business. And I look at it and I think about it in three questions. First, am I here and am I clear? Am I really into my business? Am I serving my business or does my business serve me? And I think life is too short to live where you serve your business. Your business is your personal vehicle to more freedom and more wealth.

And the way I define freedom is pretty simple - it's doing what you want, when you want, as often as you want, with whom you want. And if you love what you're doing and you think, God, this is amazing, and I am here and I am clear and I'm doing exactly what I'm supposed to do, which is the way I look at selling businesses for fellow entrepreneurs, then that's awesome.

And it's not time to sell your business. If you're not sure about that, I would think a little bit harder, and I would dive in and say, do I have the right vision? Do I have a clear vision on where

I'm going to take my business in the next one, two, three, maybe even five years? What do I need to do in order to resolve it and feel great, and feel like I've accomplished what I've accomplished? Now, if your business is growing 40% a year or 50% a year, you probably have a clear vision. You're probably executing really well and you probably feel in flow. On the other hand, if you've been growing at 5% for the last five years, well that's a little bit more difficult, and perhaps somebody else can do it better than you.

Whenever my business is growing at 5%, I'm looking to sell. I'm saying, okay, I need an operator. I'm more of a strategic guy. And how do we focus on really creating something that is amazing, where you're on point and on purpose, but your growth rate will be a big indicator of that.

And the final thing is, you have done what you came to do if you, if you went into your business, when I came to the business brokerage business, i knew I wanted to change the way that entrepreneurs buy and sell businesses. I've started three of the largest brokerages. I hired, one of them, or I've acquired them to get the people, and I've really made it a much more efficient market. And that's what I set out to do when I came here.

But if you left your current business and think about this for a second, would you feel resolved or would you feel like you didn't finish the job you came there to do. So I looked back at it and I say, okay, is my business serving me. Am I clear and engaged every day?

Do I have anything left to accomplish and do I have a fresh set of ideas to really implement that vision? These are the things that walk you through it. It's a bit of an imprecise science, but overall it's really a gut check. What do you think? Do you think it's time to sell your business?

Because usually if I think about selling it, it's about six months too late. So if you have any other questions on this or anything else, it would be our privilege to help here at Freedom Factory. So just give us a call, please like and subscribe. I'm Robert Hirsch. Thank you for watching and we'll see you soon.

Contact Freedom Factory

Freedom Factory
5500 Greenwood Plaza Blvd., Ste 230
Greenwood Village, CO 80111 Phone: 844-MAX-VALUE (844-629-8258)
https://www.freedomfactory.com/
https://g.page/freedom-factory-denver

Also Follow Freedom Factory here
https://vimeopro.com/freedomfactory/freedom-factory http://freedomfactory.libsyn.com https://twitter.com/FreedomFactory7 https://www.facebook.com/Freedom-Factory-112201923642080 https://vimeo.com/freedomfactory https://www.linkedin.com/company/freedomfactory https://www.youtube.com/channel/UCXUrv3qYNsR8NjZEWRDch5Q/
Available on Youtube

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When is the Right Time to Sell My Business

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In today's podcast Robert Hirsch answers the question "When is the Right Time to Sell My Business?" Watch video, listen to the podcast, or you can also read the transcript below. Freedom Factory, The World's Best Business Brokers When is the Best Time to Sell My Business Additional Videos: How Do I Sell My Business Transcript for - When is the right time to sell my business?

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How are Brokers Different from Investment Bankers

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How are Brokers Different from Investment Bankers

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Hi, it's Robert Hirsch from Freedom Factory again. And I wanted to talk to you today about a question that we get a lot, and it's, what's the difference between a broker and an investment banker? And you know, as an entrepreneur, I didn't know the difference. The first time I sold a business, I used an investment banker.

And, you know, and long story short, I became a broker because the whole situation could have gone better. And so what I learned was that that brokers, all they do is sell businesses and primarily entrepreneurial businesses. And sometimes they sell it to other entrepreneurs, sometimes they sell it to private equity firms, smaller private equity firms, sometimes venture capital's, sometimes small roll-ups.

But they're really focused on helping entrepreneurs get the maximum value for their business. Now, investment bankers and I don't know, they're just very different. And part of our team here at Freedom Factory are people that came from an investment banking background and they did really large deals, you know, primarily, you know, deals over 100 million and many deals that are five, 10, 15, 20 million are way too small for them.

Or they just, you know, essentially the fees aren't high enough to make them pay attention. So it's estimated that roughly 80% of all M&A deals are done by brokers, but roughly 10% of all M&A revenue is done by brokers. And again, you know, our average selling price are companies that do EBIDTA of roughly two to 20 million.

Contact Freedom Factory

Freedom Factory 5500 Greenwood Plaza Blvd., Ste 230 Greenwood Village, CO 80111 Phone: 844-MAX-VALUE (844-629-8258)
https://www.freedomfactory.com/
https://g.page/freedom-factory-denver

Also Follow Freedom Factory here https://vimeopro.com/freedomfactory/business-brokers

https://vimeopro.com/freedomfactory/freedom-factory

http://freedomfactory.libsyn.com

https://twitter.com/FreedomFactory7

https://www.facebook.com/Freedom-Factory-112201923642080

https://vimeo.com/freedomfactory

https://www.linkedin.com/company/freedomfactory

https://www.youtube.com/channel/UCXUrv3qYNsR8NjZEWRDch5Q/about

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How are Brokers Different from Investment Bankers

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Strategies for Getting Your Company Ready to Sell

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Strategies for Getting Your Company Ready to Sell

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Hi, it's Robert Hirsch from Freedom Factory. I was just working up in my mountain house and I needed to tell you this. I'm just working on it with a new customer and we're getting their company ready for sale, and I'm going through all their information, and I realized that not only do I need to tell our new customer this, but I think telling all of our customers how to get your company ready for sale is only going to help our tribe and our entrepreneurs.

So first of all, I want to talk about a difference between owning a job and owning a business. And I talk about this a lot, but perhaps I haven't explained it as well as I could.
So if you're not sure if you own a job or you own a business, just don't show up for a week. Maybe do a little bit of work from home. But if your income stays the same or goes up, you own a business. You've built a machine that makes a machine.
If your income goes down or your sales go down, you own a job. And before you go to sell your business, being able to transition, owning a job to owning a business who really help your valuation.

And if you don't know how to do it. We help businesses with that all the time with our home stretch program. And so again, if you're not sure if you own a business or you own a job, the best litmus test that I know is just don't show up. See what happens when you're not there because you want a business that's built on systems and processes, not on one person in this intrinsic knowledge.

Also when I write my operation manual for my business, I try and make it so easy. I joke that a monkey could do it, but I try and make it so easy that even my teenager could do it. Being able to read it and understand it, not using a lot of industry jargon or difficult to understand words so that the business operates the way you want it to is going to maximize your valuation. By the way, if you haven't put together an operations manual for your company and you're thinking about selling it, this would be a great time to do so.

Some of the tricks that I used to do that, I talked to every role and I haven't put their roles and responsibilities. I put it all in there. I take my company mission and values. I put it all in there. I take my contracts and the things that I use over and over again. For example, here at Freedom Factory, we have a pretty robust document set, non-disclosures, letter of intent, asset purchase agreements, stock purchase agreements - all the things that we use a lot for our client's benefit.

I put it all in this operations manual to get it into one place so that's easy to use. These and other things are going to help you build a business and not a job. And if you do own a job, please don't be discouraged. You know, transitioning a job to a business is fairly easy to do. It usually takes about three to six months and it can dramatically affect the final selling price of your business. If you need any help with anything, just give us a call at Freedom Factory. Thank you so much for watching. Please hit like and subscribe and we'll see you soon.

Contact Freedom Factory

5500 Greenwood Plaza Blvd., Ste 230
Greenwood Village, CO 80111
Phone: 844-MAX-VALUE (844-629-8258)
https://www.freedomfactory.com/
https://g.page/freedom-factory-denver
Also Follow Freedom Factory here
https://vimeopro.com/freedomfactory/business-brokers

https://www.youtube.com/channel/UCXUrv3qYNsR8NjZEWRDch5Q/

https://vimeopro.com/freedomfactory/freedom-factory

http://freedomfactory.libsyn.com

https://twitter.com/FreedomFactory7

https://www.facebook.com/Freedom-Factory-112201923642080

https://www.linkedin.com/company/freedomfactory

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Strategies for Getting Your Company Ready to Sell

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What is the Most Undervalued Asset Class

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What is the Most Undervalued Asset Class

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In today's episode of the podcast, Robert Hirsch from Freedom Factory talks about - What is the Most Undervalued Asset Class.

Hi there. It's Robert Hirsch from Freedom Factory again, and I want to talk to you today about what I see as the most undervalued asset class on the planet. And that's small business. If you're to go buy a small business, and let's say it's making $200,000 a year and it's in an average industry, and you know an average thing, you might be able to buy it for three times earnings.
And what that means is the purchase price of the company would be $600,000. Now a lot of guys are watching saying, you know, maybe I don't have a $600,000 check or a 6 million check or a 60 million check. Put whatever size is appropriate for you, but you can go get things like small business loans.

You can do seller carry notes. Often you can buy a company throwing $200,000 a year, for only a hundred or $200,000 into it or less. And when I look at the stock market, let's say a company is trading for 20 times earnings. So if it's earnings or $1 million, it's trading for 20 million is its market cap.

Well, it's much more interesting to buy a company at three X. They want a 20 X, and you know the math is pretty obvious. But if you have an entrepreneurial skillset and you're willing to work hard and sales and marketing and entrepreneurship. There isn't a more undervalued asset class on the planet. You know, me personally, I've made all my money from buying, selling, and operating small businesses over a 28-year career.

If you have any questions about any of this, please give us a call it freedom factory. Thank you so much for watching. Please hit like and subscribe and we'll see you soon.

Freedom Factory
5500 Greenwood Plaza Blvd., Ste 230
Greenwood Village, CO 80111
Phone: 844-MAX-VALUE (844-629-8258)
www.FreedomFactory.com
g.page/freedom-factory-denver

Also Follow Freedom Factory here
vimeopro.com/freedomfactory/business-brokers
vimeopro.com/freedomfactory/freedom-factory
freedomfactory.libsyn.com
twitter.com/FreedomFactory7
facebook.com/Freedom-Factory-112201923642080
vimeo.com/freedomfactory
linkedin.com/company/freedomfactory
youtube.com/channel/UCXUrv3qYNsR8NjZEWRDch5Q/about

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What is the Most Undervalued Asset Class

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Dont Make The Single Biggest Mistake When Selling Your Business

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Dont Make The Single Biggest Mistake When Selling Your Business

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Selling a business seems pretty straightforward – offer your business to prospective buyers, sign the deal, and voila! However, it is not always the case. Many business owners are struggling to sell their business.
Finding buyers alone takes time. Some already find buyers, but as they take off, things begin to fall, and they end up going back to square one. In today's episode from Freedom Factory Robert discusses the single biggest mistake entrepreneurs make when selling their business, and how to avoid it.
Thanks for watching. Please hit like and subscribe and we'll see you soon.
Freedom Factory is the world's best business broker helping entrepreneurs sell their business for maximum value.
Contact Freedom Factory for more information.

Freedom Factory
5500 Greenwood Plaza Blvd., Ste 230
Greenwood Village, CO 80111
Phone: 844-MAX-VALUE (844-629-8258) https://www.freedomfactory.com/
https://g.page/freedom-factory-denver

Also Follow Freedom Factory here

https://vimeopro.com/freedomfactory/business-brokers http://freedomfactory.libsyn.com
https://twitter.com/FreedomFactory7
https://www.facebook.com/Freedom-Factory-112201923642080 https://vimeo.com/freedomfactory https://www.linkedin.com/company/freedomfactory

Additional Videos from Freedom Factory

What Type of Contract Structure Do I Need to Sell My Business
How to Prepare My Business to Sell
What is the Most Undervalued Asset Class

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Dont Make The Single Biggest Mistake When Selling Your Business

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Listen to Robert Hirsch from Freedom Factory talk about the stops you should take in preparation for selling your business. If you're interested in finding out how to get the maximum value for your business, contact Freedom Factory today.

Contact Freedom Factory

Freedom Factory
5500 Greenwood Plaza Blvd., Ste 230
Greenwood Village, CO 80111
Phone: 844-MAX-VALUE (844-629-8258)
https://www.freedomfactory.com/
Follow us on Twitter @freedomfactory7

Subscribe to Our Youtube Channel
Put an operations manual together to make the transition as easy as possible. And all of this is going to be, is going to help you when you put the right team. Find the right appraisers, find the right brokers, and if you need any help with this, give us a call here at freedom factory. You know, please hit like and subscribe and thanks for watching.
Learn how to sell your business with Freedom Factory
Find out more about Robert Hirsch

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What Type of Contract Structure do I Need to Sell My Business?

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What Type of Contract Structure do I Need to Sell My Business?

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Robert Hirsch, founder of Freedom Factory, discusses the different types of contracts that you can use to sell your business.
Hello, this is Robert Hirsch from Freedom Factory, and I want to talk to you about something that sometimes you get so involved in selling businesses that you don't realize that you have all these TLAs or three letter and acronyms that people don't understand. And so I just got a letter from one of my clients and he was talking about the difference between deal structure when selling a business.

And so we're going to cover what's the difference between a stock purchase agreement and an asset purchase agreement because they're, they're pretty fundamental and often in the LOI or the letter of intent, it's going to be listed whether they want to do a stock purchase agreement or an asset purchase agreement.

And so as both a seller and a buyer, often if you don't know which one to do, and I'll give you exceptions to the rule before we get through the entire video. But I like asset purchase agreements and there's some fundamental differences, and I'm going to go into those right now. So an asset purchase agreement means you're buying the assets of a company.

So you're going to set up another shell company and are going to buy the assets and you're going to put it in there. So. Uh, for example, when I was buying a, I personally bought a boat company I boat manufacturer for, for fly fishing. And many of you that know me know that I love to fly fish and we're up here in my mountain house right now and it's a raining day.

And I decided it's probably good to get some work done. So I bought it with an asset purchase agreement. And so when you do that, all you have to do is just get the assets of it and put it in there. So the differences are the liabilities of the old company. Don't transfer. So if they owe the bank $100,000 you buy the assets and you put them in there and they're unencumbered, and then they have to pay off the debt. https://vimeo.com/389028622

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What Type of Contract do I Need to Sell My Business

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What Type of Contract do I Need to Sell My Business