There are several ways to use your business’s value to put $$$$$ in your pocket – often without reducing the value of your business or even increase the value.
Sell Your Least Productive Assets – If you have too many clients or too many products or specific assets that are not your speciality you may want to consider selling those assets – to a non competing entity or bringing on an Associate to effectively mine or buy those asset / deal with those clients. If you have purchased businesses in the past you may have a lot of customers who have not become clients. Queenston can help you. We have qualified and interested buyers all over the country.
Dealer to Dealer Transition – changing Dealers can accomplish a few things usually – put $$$ in your pocket; firm your business up and adopt some better systems and/or other synergies. Queenston has working relationships with several Dealers and we are familiar with most so can give you the scuttlebutt we hear out there.
Sell and Stay – if you are considering an Exit down the road you may want to consider selling now and staying on to run the business or continue to deal with your favourite clients. Right now, markets are high and interest rates are low – great time sell but not Exit!!
Leverage your Business – with low interest rates and available financing now is a great time to borrow against your business to pay off personal debt (make your debt tax deductible) or diversify your investments. A cottage perhaps or a southern destination becomes attainable. Queenston works with a few lenders and may be able to point you in the right direction.
Change your Business Model –One of the most important factors to determine the value of your business is your business model. Is it what buyers want? Are your terms for a transition flexible? Is it easy to move to a new advisor? What are the demographics of your clients? How strong is your brand? The below to average business may sell for 1.5 – 2.5x recurring revenue. Above average businesses can sell in the 3 – 4x recurring revenue.
Partnership and/or Associate – an excellent way to take advantage of economies of scale created by a larger business can be achieved by bringing on a Partner and/or an Associate.
Are you considering an acquisition or a merger? Queenston has a new Acquisition program where we work with advisors to find prospective acquisitions. Let me know if interested.