Have you ever wondered how a business model impacts the scalability and valuation of a company?
Throughout my personal entrepreneurial journey, I have run businesses in distribution, traditional professional services, technology-enabled services, and software. Each business model requires different operational models that impact every aspect of the business.
How does a business model impact scalability and valuation?
Today, I interviewed Linda Rose, an entrepreneur who had three businesses, each with a different business model. Linda tells us her story of starting, growing, and selling each business and how they were each different. The revenue per employee in one of her businesses was over double that of the other successful business, and it achieved a massive valuation at the exit.
Linda is currently an M&A advisor in the technology sector and the author of Exit Your Company. She is going to walk us through how she grew and sold her companies and how she shifted her mindset to view the company through the eyes of a buyer.
Linda shares the importance of focusing on the right aspects of business, sustainable cash flow, realistic projections, and valuing businesses. Linda also shares her transformative experiences from a challenging hike that led to personal and professional growth and her current work as an M&A advisor and author.
Enjoy!
// WATCH THE INTERVIEW ON YOUTUBE: Intentional Growth™ Podcast
What You Will Learn
Linda's career journey included public accounting, technology, and starting three businesses.
After facing challenges during the 2008-2009 recession, Linda focused on her hosting company and the importance of building recurring revenue streams.
A backpacking trip inspired Linda to write a book and become a sell-side M&A advisor.
Concentrating on recurring revenue streams and efficiency can lead to greater financial rewards.
Sustainable, predictable cash flow is critical for a business's value.
Entrepreneurs should think as buyers, focusing on the sustainability and future growth of their company.
CPAs tend to focus on past numbers rather than forward thinking; entrepreneurs should seek forward-thinking strategies and plans.
Linda sold her three businesses with varying valuations and deal structures, emphasizing the importance of having multiple offers to compare.
When selling a business, consider priorities such as company culture and employee well-being.
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