(Video Transcript - lightly edited for clarity)
There is value and then there is saleability. They are two grossly different things folks. If your team is closing 50 million dollars annually and as the rain maker you are responsible for 25 million of that 50 million, its poor for your team's saleability.
Other thing that is common in real estate especially in teams, is having a personal name as the name of your team. If I am buying your business that has your name on it, that affects the saleability. So one of the things we do recommend is coming up with a more generic name and it has to be done very carefully. That is what we do in our Engineed Exit Strategy Consulting™ is to insert the timelines of how to gradually change the name and get a market acceptance. By correcting saleability issues like this we can get maximum value when it is time to sell.
One client wanted to sell his team for three million dollars. I worked with him over a year to maximize his team's value and saleability which took about a year to impliment. He ended up selling it for over seven million dollars.
Now, that’s a lot of coins he could have left it on the table. He just went out and looked for the first buyer that was willing accept his initial price of three million dollars.
It is important that when you plan for the eventual sale of your team, you think like a chief executive officer (CEO). This will make your team grow faster, become more profitable and build substantial equity you can cash in on when it is time to sell.
Request a complimentary 21-Point Assessment of your team's strengths, weaknesses and opportunities which is the first step to creating an Exit Strategy that is engineered for maximum value and saleability.