Your Secret Weapon To Get The Highest Valuation

Posted on December 22, 2007
Filed Under Automotive, Business |

What is your company worth?

Instead of trying to appraise the historic value of your business to address your desire to attract an investor, here is a different approach. Sell what is most valuable to a growth investor.

It was a growth investor’s worst nightmare. After investing in Mike’s company to share in a promising opportunity, there was an unexpected change in the marketplace. Cash was not enough to address the problem. It took the entrepreneurial creativity of Mike not only to mitigate the risk but to convert the risk into an opportunity which protected the company and the investor’s capital.

The nature of entrepreneurship is to deal with change – growth – the future. Investors are really buying your capacity to cope with unknowns and uncertainties to achieve a profitable outcome. Investors may use the past to verity your skill as an entrepreneur. But never confuse yourself about them “buying” that past. The past is historic; a factoid. Think of the past as static value and the future as dynamic value. Static value does not change, but dynamic value is the ability to act and, hence, to protect and enhance value in the future.

In today’s knowledge economy – value is less about the past, and much more about the future. When you realize that investors are buying your ability - as an entrepreneur - to cope with change, you may wish to alter your interpretation of value.

Use your past – static value- to demonstrate your ability to be a source of continuous success in the unpredictable future. Use your secret weapon - dynamic value – the future you will create, to get the highest value from the marketplace of growth investors – investors who want you in control!

For over 20 years Stefania Aulicino, founder/president of CapitalLinkUSA, has obtained cash for business owners to grow their company to the next level-without giving up control. http://www.CapitalLinkUSA.com/

Tags: , , , , ,

Related Posts

Comments

Leave a Reply




Close
E-mail It