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Value Driver #1: Recurring Revenue
Predictable Cash Flow Into the Future |
Recurring revenue is the holy grail for business owners looking to have a valuable and sellable company. A customer base with a subset of recurring revenue that is contractual and repeating in nature increases the probability that the business will have stable, predictable revenues and cash flow into the future.
Although all recurring revenue will have a positive impact on business value, some forms are more desirable than others.
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Who Will Lead The Recovery? Start With Texas
The debate between Richard Florida and Joel Kotkin on the  future of the U.S. economy proves yet again that experts usually have trouble agreeing on anything. But when it comes to predicting what place will lead the country to a solid economic recovery, forecasters are all on the same page: Nobody's messing with Texas.
Although the economy has slowed in recent months, the prospects for a robust recovery are still looking up for the Lone Star State. Texas gained 14,000 jobs in June even as employment fell in 27 other states, according to the Bureau of Labor Statistics. That brought Texas's total for the first half of 2010 to 178,700 -- more than twice that of any other state.
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Tip #21: The Lease Can Make or Break the Sale!
The Business Sale Often Hinges on the Lease |
The lease terms of the business space can be a major consideration for a buyer. For example, a distribution business with a long-term lease on a good location can be attractive. But a long-term lease on a business needing more space to grow could be a detriment. Or, there can be concerns for an expiring lease when the landlord might demand a large increase. When it comes time to negotiate a new lease, business owners must carefully think through the timing of their plans for exiting their business.
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