Latest news with #businessvaluation
Forbes
6 days ago
- Business
- Forbes
How To Remove Yourself From Sales, Without Breaking Your Business
If you're still leading every sales conversation, you become the bottleneck in your business. Most business owners don't start with the intention of becoming their business's bottleneck. But if you're still leading every sales conversation, closing every deal, and holding every client relationship in your head, you are. And here's the hard truth: If your business needs you to make a sale, you business is not ready to be sold if you ever desire to exit. that's because business buyers don't just evaluate profit, they evaluate risk. And the riskiest businesses? The ones that crumble when the founder steps away. The good news is: you can fix you being the bottleneck in sales, without losing revenue, quality, or control. In this article, I'll walk you through how to remove yourself from sales, without breaking your business. Let's start with the why. Step 1: Understand Why Founder-Led Sales Lowers Business Valuation When a business buyer looks at your business, they're not just buying revenue, they're buying reliability and predictability. If, as the founder or owner, you're the one making the sales, business buyers see: This is where many founders stall: they assume they're indispensable. But from a business buyer's perspective, you being essential is a liability, not an asset. Action Step You Can Take: Start by getting clear on exactly how involved you still are in the sales processes of your business. Grab a notepad (or a spreadsheet) and list every single sales-related task you personally handle. This becomes your Sales Dependency Map. Once you see the map, you can start removing yourself from sales related activities. Step 2: Choose Your Path to Sales Independence There are two core strategies to remove yourself from sales: This is ideal for service-based businesses with longer sales cycles and human-to-human trust: This works well for productized services, digital offers, or education-based businesses: It's the model I use for more than 15 years. I haven't been on a sales call in years. But sales happen all the time, because the Founder-Free Sales System replaces me. So how do you know which path is right? Look at your offer, your team, and your personality. Some founders thrive on relationships. Others prefer to scale through structure. There is no one-size-fits-all. But doing nothing is the only wrong choice. Step 3: Document What Only You Know If your sales process lives in your head, it can't be delegated. Start by recording yourself: Write down your typical structure: how you open, what questions you ask, and how you handle objections. If you use storytelling or case studies, add those too. Your goal is to build a Sales Playbook, a simple internal guide that includes: Think of it as your business's sales brain. Once it's written down, others can step in, whether that is a new sales agent or the buyer of your business. Step 4: Shift Your Team Into Sales Mode Here's a mindset shift: sales isn't a department. It's a company-wide culture. Even if you only have two team members, they impact the sale: Start having sales check-ins where every team member answers this question: "What did you do this week that helped someone say yes to us?" It builds buy-in into sales from the whole team. It shifts ownership. And it makes sales a shared priority, not your solo burden. Step 5: Delegate One Sales Task Now Business owners often fail at sales delegation because they try to hand over everything at once. Don't. Start small. Pick one low-risk task: Once you've delegated one piece, you build confidence and capacity. Step 6: Automate Your Sales System If you're automating (parts of) your sales process, you're giving up live client feedback. So you need another way to hear what's working well. With automations, your numbers become your ears: Set up a small spreadsheet with your key metrics. Look for trends. Iterate constantly. Your sales system should improve even when you're not touching it. Conclusion: You Don't Have to Be the Rainmaker Forever Removing yourself from your sales department isn't just a strategy. It's a key responsibility you have as the owner of your business. Your clients shouldn't have to wait for your calendar availability to get served. Your team deserves a business that grows without burning you out. The future buyer of your business is looking for a company, not a personal brand built around you. If you wait until six months before selling your business to step out of your sales department, it's already too late. Start now. Start small. But start. Because a business that does sales without you? That's a business worth buying.
Times of Oman
14-07-2025
- Business
- Times of Oman
IPL valuation hits $18.5 bn, up 12.9%, fuelled by media rights, sponsors, and fan engagement
New Delhi: The business valuation of the Indian Premier League (IPL) has surged an unprecedented USD 18.5 billion, marking a 12.9 per cent increase over the past year. According to the latest edition of analysis by Houlihan Lokey, valued at Rs 1.56 lakh crore in Indian currency, this growth underscores the IPL's status as one of the most lucrative sports leagues in the world. The global investment bank listed on the NYSE stated that the brand value of IPL increased 13.8 per cent in 2025, reaching USD 3.9 billion (equivalent to Rs 32,721 crore, reflecting a 16.1 per cent increase year over year in INR terms). The firm's analysis added that the growth of IPL underscores the league's expanding commercial appeal, global reach, and deepening fan engagement, particularly in the digital domain. For perspective, brand value represents the monetary worth of an intangible asset, which typically encompasses elements such as the trade name, trademark, and associated goodwill. It is important to note that brand value is a subset of a company's or entity's overall business value, which includes tangible assets, operational revenues, and other intangibles. Since its inception in 2008, the IPL has evolved into a multibillion-dollar enterprise, consistently ranking among the most valuable sports leagues globally. Its influence extends far beyond the field, shaping broadcasting standards, fan engagement strategies, and franchise-based models that are now being emulated worldwide. The firm added that the 2025 IPL season exemplified the league's resilience and operational agility. Despite a temporary suspension due to geopolitical tensions in early May, the tournament resumed swiftly, backed by robust contingency planning and stakeholder coordination, the analysis added. The IPL continues to set benchmarks in sports business. Franchise valuations have soared, media rights deals have reached record highs, and brand partnerships have diversified across sectors. The top franchisees clock Rs 6,500 million to Rs 7,000 million in annual revenues, with up to 80 per cent visibility secured before the start of the tournament. On the cost side, the presence of a salary cap (Rs 1,200 million per team) functions as an embedded margin protector, preventing wage inflation (a major concern for global sports teams) and ensuring competitive parity among teams. Moreover, franchisees operate with minimal fixed-asset exposure, benefitting from ready access to stadium infrastructure already created by BCCI, translating into a capital-light model with structurally high return on employed capital. When benchmarked against global peers like EPL and NBA teams that wrestle with high player transfer fees, variable wages, and high stadium operating costs (including servicing stadium debt), IPL franchisees operate with an asset-light, revenue-guaranteed model, a structure that not only cushions downside risk but also amplifies operating leverage on the upside. "For institutional investors, this makes the IPL not just a sports league but a high-growth compounder in the entertainment space, catering to a fast-growing fan base with rising disposable income and a strong appetite for premium digital experiences," the study stated. Going further, the study observed that Bengaluru (RCB) triumphed over Punjab Kings (PBKS) in a final that shattered viewership records. The title clash drew over 600 million views on JioCinema, reaffirming the IPL's status as not only India's premier sporting event but also one of the world's most-watched broadcast spectacles.
Forbes
06-07-2025
- Business
- Forbes
Earnouts Can Be The Best Way To Buy A Business
A core fundamental to evaluating whether to buy a certain business is the assurance, to the best of the buyer's ability, that the business' performance will remain status quo post sale assuming no catastrophic events. While potential future growth is sexy, stability is valuable. Earnouts, also referred to as performance-based conditions, can be an ideal way to bridge the gap between buyers and sellers and address issues that can drastically impact the value of a business post sale, either up or down. These deal terms provide the seller with the ability to earn (this the term 'earnout') the full valuation if certain targets are hit in the future and provide the buyer with protection if they don't. Some examples of scenarios where earnouts should be considered include:Keep It Simple Earnouts are best laid out when the conditions are clear and easily measured such as achieving specific revenue targets or retaining a certain customer after the sale. To effectively structure an earnout, two valuations need to be compiled. The first is based on the status quo financials. The second is based on the scenario whereby whatever is measured actually happens. The delta becomes the earnout target. For example, a business generates $1.0 million in earnings and the buyer and seller agree on a 5x multiple and thus a $5.0 million purchase price. However, one customer represents 30% of the revenues and profits. As such, if that client stops buying, the profits will drop to $700,000 and the enterprise value at the same multiple will be $3.5 million. The difference, or delta of $1.5 million becomes the earnout piece. As such, the deal structure would be a $3.5 million purchase price and the opportunity for the seller to earn an additional $1.5 million if the customer continues to buy from the new owner. The same structure can be used for the other examples noted herein. The key is to establish two valuations with the situation happening or not happening. The word earnout on a a keyboard keySellers Cannot Guarantee A Buyer's Success While this all sounds great from a buyer's perspective to protect their downside, the seller will have legitimate concerns. Although the buyer assumes the greater risk in these transactions, a seller cannot guarantee their success. What if the client stops buying because the new owner is incompetent? This is no fault of the seller, and they should not be penalized for it. Conversely, where earnouts are warranted, the buyer only has the word of the seller and whatever research they have been able to compile, that certain events will or will not materialize. As such, there must be transparent and meaningful discussions between the sides to understand the level and potential impact of these concerns. How Long Should The Measurement Period Be? In most cases, there is a disparity between buyer and seller positions in the earnout measurement period. As a guideline, it is reasonable in most cases for this to be somewhere between 12-24 months after closing the deal. In cases where the seller may have implemented certain initiatives that will only generate revenue after the sale and they want that factored into the valuation, it may take a longer period for those events to materialize. In situations where the business has experienced a recent downturn, a buyer will want a shorter measurement period because if they are able to turn things around, why should the seller benefit from what they, the buyer, has done to turn things around? All Or Nothing Doesn't Make Sense Earnouts, in most cases, are most acceptable and fair to both sides when there is a sliding scale in place as a measurement tool. Meaning, the condition can be partially met and thus partially paid. If the earnout piece is $1.0 million and once measured it is 80 percent achieved, then 80 percent of the earnout can be paid. The suggestion is also to have a floor so there's a point at which the earnout is not paid if the metric is for example, below a certain percentage. Know Your Lender – Earnouts May Not be Allowed Many lenders will not fund deals where there is an earnout unless the maximum potential earnout amount is factored into their underwriting. They will not agree to an amount of leverage and debt service if the business may be faced with a future additional expense from an earnout. The best way to address this is to carve out a seller not equal to the total potential earnout that is subject to adjustment if the target is not met. Or, via the seller retaining equity in the business post sale that can be diluted based upon the results of the earnout's measurement. A Final Word Performance-based conditions can be an effective way to get deals to the finish line. While buyers always want to mitigate their deal risk, they must also understand that these deal terms only make sense when there is the possibility of a significant event attributable to the former owner impacting the business after the sale. Similarly, a seller must realize that a business remaining at least status quo post sale is a fundamental requirement for any prospective buyer and therefore the selling party must have flexibility and assume part of the risk if they are delivering a business that they know can change significantly in the near future and by no fault of the buyer.
Forbes
02-07-2025
- Business
- Forbes
5 Business Valuation Questions Every Owner Should Ask
If you're banking your future on selling your business, it's time for a reality check. Think your business is worth millions? Think again. A recent survey revealed that 96% of small business owners don't know what their business is actually worth. And most? They overestimate their business valuation, sometimes by six figures or more. If you're banking your future on selling your business, it's time for a reality check. In this article, we're cutting through the mistakes, misunderstandings and confusion around small business valuations. I'm answering the five most common questions business owners ask about how valuation. Whether you're looking to sell this year or in three years or never, as a business owner this article will give you the clarity to make smarter, more strategic decisions starting today. Question 1. 'Why Can't I Just Estimate My Business's Value Based on Revenue or Gut Feel?' Let's start with the classic: 'My friend sold their agency for 4X revenue. I've worked hard. I know what mine's worth.' I hear this every week. But here's the truth: your effort, your gut feeling, your desired retirement number,… none of those define market value. It's not personal. It's just business. Common (but unreliable) ways business owners guess their business value: The problem? None of these reflect what a buyer is actually willing to pay. Every business is different. What sells for 4x profit in one industry might barely scrape 2x in another. Factors like customer churn, owner involvement, recurring revenue, and market risk all matter, often more than revenue or profit itself. If your business can't run without you, it's not as valuable as you think. Action Step: Separate your business's emotional value from its market value. Then use a valuation method grounded in actual data, not guesswork. Question 2. 'How Accurate Is a Valuation Tool I Found Online?' Let's be honest: Free often sounds too good to be true. So how reliable is an online valuation tool, really? Most owners assume a free valuation is just a gimmick. But not all tools are created equal. For example, the valuation tool I always recommend business owners isn't based on guesswork. It pulls from over 4,500 real-world business exits, totaling more than $30 billion in deals across six continents. It runs your numbers against patterns from actual sales, looking at revenue, profit margins, industry trends, and more. Does that mean it's a full-blown appraisal? No. But is it a powerful, independent starting point for small business owners? Absolutely. Action Step: When you use a valuation tool, be honest about your business's profit, industry, customer base, and growth rate. It's not about impressing anyone. It's about getting a real picture of where you stand and what you can improve. Question 3. 'Why Is My Valuation Lower Than I Expected?' This one stings. You plug in the numbers, hit 'calculate,' and the result feels like a punch in the gut. If that's you, you're not alone. Most business owners get hit with the same surprise. That's because we tend to overvalue effort and underestimate risk. Here's what might be decreasing your business value: The difference between what you hope your business is worth, versus what it is actually worth, is what we call "the value gap'. It's the space between what you think your business is worth and what the market will actually pay. And it brings us to a powerful insight: There's a difference between a valuable business and a sellable one. You might have built something amazing. But if it can't run without you, or if growth has plateaued, buyers see risk and will price accordingly. Action Step: Take an exit-readiness assessment to identify the biggest factors holding your valuation back. Then use that insight to build a roadmap towards your big exit. Question 4. 'Can I Trust Business Brokers to Value My Business?' Short answer: it depends. Here's the reality: Many business brokers make money only when they sell your business. That creates an incentive to inflate the valuation just to win your listing. And while a higher number might feel good at first, it can backfire fast. Deals fall apart. Buyers walk away. Months are lost. Confidence takes a hit. The truth is, overpricing your business doesn't increase your chances of a better sale. It often delays the deal or kills it altogether. Action Step: Always ask brokers to explain their valuation methodology. Better yet, get an independent valuation first, so you walk into those broker conversations with knowledge. Question 5. 'When Should I Start Thinking About Getting a Business Valuation?' Too many owners ask this question when it's already too late. 'I'm not selling yet. Should I still bother?' Yes. And here's why. A business valuation isn't just for those business owners looking to sell their business. It's for smart planners who want options. Your business valuation tells you how much of your net worth is tied up in the business and how liquid it really is. It shows you what your exit might look like. It helps you spot weaknesses before buyers do. But most importantly, it lets you set clear, strategic goals to build wealth before you're burned out or backed into a corner. Think of it like a health check-up. You don't wait for a heart attack to start eating better. You get annual blood work, make small changes, and track improvement. Same with your business. Action Step: Start treating your valuation like a financial KPI. Check it once a year. See how your strategic efforts are shifting the valuation. That's how real wealth is built: on purpose, not by accident. Final Thoughts: Know Your Business Valuation, Own Your Future Business valuation is about numbers and clarity, confidence and control. When you know what your business is worth, and what's holding that valuation back, you shift from guesswork to leadership. You stop reacting and start engineering your big exit. You get to make choices: Grow or sell. Delegate or hire. Automate or pivot. It starts by asking the right questions, and being brave enough to face the answers. Because knowing your business valuation? That's the first step to owning your future.
Associated Press
10-06-2025
- Business
- Associated Press
RSI & Associates, Inc. Announces Limited Use of Artificial Intelligence (AI) in Business Valuations
CORPUS CHRISTI, Texas, June 10, 2025 (SEND2PRESS NEWSWIRE) — RSI & Associates, Inc., a leading provider of business valuation, feasibility studies and consulting services, today announced a policy of limited and careful application of Artificial Intelligence (AI) in the preparation and analysis of business valuations. This decision is driven by the firm's commitment to maintaining the highest standards of accuracy, reliability, and ethical conduct in its valuation practice, particularly in light of current legal, regulatory, and ethical uncertainties surrounding the use of AI in financial analysis. While recognizing the potential of AI to enhance certain aspects of business valuation, RSI & Associates acknowledges the inherent risks and limitations associated with AI's current state of development. These include concerns about: RSI & Associates emphasizes that the core of its business valuation methodology will continue to rely on the expertise and professional judgment of its accredited valuation analysts. These professionals possess the critical thinking skills and industry knowledge necessary to interpret complex data, identify nuanced value drivers, and provide well-supported, defensible valuation opinions. This human element represents the 'Art' aspect of Business Valuations. According to Gerald W. Brown, Sr, President and Senior Business Appraiser at RSI & Associates, 'Accurate and reliable valuations depend on the expertise of the appraiser, as the integrity of the valuations must be a priority. Valuations, whether of a company's stock or from an asset sale perspective, rely on both 'science' and 'art.' AI can certainly assist with the scientific aspects by processing large datasets and applying algorithms. However, it cannot replace the 'Art' demonstrated through human judgment, stakeholder interaction, subjective assessment and qualitative analysis, which are all crucial for a defensible outcome of a certified valuation.' About RSI: Founded in 1993, RSI & Associates, Inc. has provided business valuation, feasibility studies, exit planning and consulting services for over 30 years. RSI & Associates serves clients across the United States, in diverse industries, offering comprehensive and objective valuation opinions for a wide range of purposes. RSI & Associates, Inc. is committed to maintaining the highest standards of integrity, professionalism, and client service in every engagement. Learn more at: LOGO link for media: NEWS SOURCE: RSI & Associates Inc. Keywords: Consulting and Coaching, business valuation, feasibility studies and consulting services, AI, Artificial Intelligence, SBA Loans, USDA Loans, Feasibility Stud, CORPUS CHRISTI, Texas This press release was issued on behalf of the news source (RSI & Associates Inc.) who is solely responsibile for its accuracy, by Send2Press® Newswire. Information is believed accurate but not guaranteed. Story ID: S2P126829 APNF0325A To view the original version, visit: © 2025 Send2Press® Newswire, a press release distribution service, Calif., USA. RIGHTS GRANTED FOR REPRODUCTION IN WHOLE OR IN PART BY ANY LEGITIMATE MEDIA OUTLET - SUCH AS NEWSPAPER, BROADCAST OR TRADE PERIODICAL. MAY NOT BE USED ON ANY NON-MEDIA WEBSITE PROMOTING PR OR MARKETING SERVICES OR CONTENT DEVELOPMENT. Disclaimer: This press release content was not created by nor issued by the Associated Press (AP). Content below is unrelated to this news story.
