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Marvin L. Storm Host

Marvin L. Storm is a nationally renowned business, entrepreneurial, franchise, and exit planning expert. He specializes in helping entrepreneurs to create a monetization event of their business by focusing on improving competitive and market position, financial and operational metrics, and to ensure continuity of management in order to position businesses for successful exists prior to the actual sale of the business.

The Story Behind The Podcast

Listen to Marvin’s personal story that led him to become an entrepreneur, create multiple businesses, and eventually start this podcast to help business owners exit their business by learning from other’s stories.

Part 1 – The Road To Entrepreneur

Part 2 – The Entrepreneurial Spirit

Part 3 – Business Exit Strategies

Why Is A Business Exit Strategy Important?

Profit

Help companies design exit strategies positioning the company for a profitable exit months and years in advance.

Metrics

Develop and focus on key metrics that are necessary for buyers to review during their due diligence.

Readiness

Use profile tools to help determine the personal readiness of business owners to exit their business.

Planning

Create a business exit checklist that prepares the business owner and business for a successful exit.

FAQs

Here are some frequently asked questions.

HOW CAN BUSINESS VALUATION BE INCREASED PRIOR TO SELLING A BUSINESS?

Increasing the value of a business is not magic. Value creation is simply focusing on what a buyer is expecting to see when investigation a business they may wish to buy. If the proper steps have been taken and the business has been structure to satisfy the key value drivers a buyer is wants in a business, the valuation formula is a relatively easy calculation. However, if the key drivers are not present when a buyer begins their due diligence the buyer may not proceed to the offer stage or if an offer is made, it will be a much lower price than the seller is expecting.

WHAT ARE THE KEY VALUE DRIVERS IN VALUE CREATION?

The value drivers are:

  • Financial metrics that are easily verifiable.
  • Customer base that is not concentrated with a relatively few customers.
  • Supplier and product diversification.
  • Monopoly pricing control.
  • Personnel depth.
  • Organizational structure.
  • Red or Blue Ocean strategy
  • Types of revenue

WHAT IS A RED OCEAN / BLUE OCEAN?

A red ocean is a very competitive market where products and services are commoditized. A blue ocean is a market environment where margins are high because there is little direct competition. A red ocean can be migrated to a blue ocean by finding niche markets.

WHY ARE THE TYPES OF REVENUES IMPORTANT IN BUSINESS VALUE CREATION?

Not all revenue is valued the same. Revenue that is dependent on a single large customer is valued less than revenue from a thousand smaller customers. Review that is reoccurring is valued more than revenue that is dependent ongoing advertising and marketing expenditures. High margin long-term contract revenue is valued higher than almost any other type of revenue.

WHAT IS THE VALUE BUILDER SCORE?

The value builder score is the weighted score from an in depth 35 question assessment that delves into the details of how a business owner has built his business and what his attitudes are on organizational, personnel, and financial structures in the business.

The score is a numerical rating of how much improvement there is to be made to maximize the value of the business. For example, a score of 50 will have an exit value of X. A score of 85 will have an exit value of X + .7X, or a project increased exit value of 170% of X.

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Business Exit Stories
Podcast Produced by Variable Productions
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