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Do You Have a Lifestyle or Acquirable Business

The difference in valuation can be significant at time of exit

In our work, we regularly come across small to mid-sized companies that are ideal for supporting the life style of the owner, but not ideal for attracting interest from a third party acquirer.

The difference can be found by asking yourself questions like these:

  • How reliant is the ongoing growth and success of my business on me personally?
    • If the answer is a lot, you might have a life style business
  • Do I withdraw through payroll or distributions the majority of the money my company makes or do I continue to invest in my business and leave sufficient levels of working capital in the company to enable it to grow?
    • If the answer is yes, you might have a life style business
  • Does my company have good financial controls and sound planning disciplines in place that help us as we scale up the business?
    • If the answer is no, you might have a life style business
  • Am I building a company that can continue to scale up even in the hands of a new owner?
    • If the answer is no, you might have a life style business

A life style business can be wonderful in helping a private owner live the life they want. No one is going to begrudge that. But, if the desire is one day to attract a third party to come in and pay a premium price to take your business over, then you can’t present them a life style business. Reason is they will have to invest to move it beyond being a life style company and associated with this comes risk and acquirers don’t like risk.

Talk with your advisors, give us a call (949.874.0787) if you’re wondering if you might have a life style company and whether it could impede you from achieving a sale one day to a third party. Use time as a friend to evolve your business to one that will attract the interest of multiple acquirers and get yourself on the path to a euphoric future exit event.

Use Greenpoint Testing to Achieve Your Desired Exit Valuation

It only takes 106 questions, scanning 10 essential business functions, to stress test your readiness for a successful exit.

However, these questions require thoughtful commitment to achieve your desired exit valuation.

During this up to hour-long online testing, you'll see questions such as the following.

Sample Question 02

After internalizing each question, select among three answer options – Agree, Unsure and Don’t Agree – choosing the answer which best describes you and your business.

Then, complete the Greenpoint questionnaire to unlock your personalized report, which will reveal any gaps in your planning, pointing to the action steps needed to maximize your desired exit valuation.

Format: Digital

Delivery method: Email

Report included: Your Greenpoint results

Stethoscope Frees You to Work On Your Business, Beyond In It

118 questions, scanning 10 essential business functions, free you to work ON your business, rather than solely IN your business.

With each question requiring thoughtful commitment to identify opportunities to further your success.

During this up to hour-long digital Q&A, you'll see questions such as the following:

Sample Question 02

After internalizing each question, select among three answer options – Agree, Unsure and Don’t Agree – choosing the answer which best describes you and your business.

Complete the Stethoscope questionnaire to unlock your personalized report, which will expose gaps [if any] in your planning, and tips for future growth, resulting in action steps needed to maximize your thinking as a business leader.

Format: Digital

Delivery method: Email

Report included: Your Stethoscope results