Corporate Partner Corner
Special benefits and offers from our corporate partners for NAWBO members.
Is Your Company Saleable?
Written by Jan Robertson, SiVal Advisors, LLC
From time to time I am asked to speak on the topic of ‘Exit Planning’ – how to prepare to sell one’s company. One of the critical areas I address in my talks is: ‘What makes a company Saleable’? Sadly, not every company is saleable. However, if you know what the key elements of ‘saleability’ are, there are steps you can take to make your company a viable sale candidate!
Here are, in my experience, some of the key saleability factors:
What Makes A Company Saleable?
- Programmable / teachable products or services – that you can impart to others who will buy and run your company post-sale. A reasonable transition period is usually required to transfer this knowledge, but it must be transferrable.
- Valuable IP or brands – desirable in the marketplace. Well-established brands and / or patented IP can significantly boost valuation, sometimes beyond what normal ‘market multiples’ of revenues and profits might indicate.
- Specialty / uniqueness – in a sought-after area. This is a more subjective version of IP or brands, described above, but nonetheless important. We are seeing this especially in ‘hot’ sectors in the current market.
- Recurring, diversified revenue stream – if your business is highly dependent on one or two key customers now is the time to diversify to make it more attractive to buyers!
- Founder / owner should be ‘dispensable’ – in other words the company cannot be wholly dependent on you. Otherwise you will end up negotiating a long ‘earn-out’ (topic for another article).
- Accretive – especially for public buyers. Positive earnings and cash flow will help attract public company buyers, which will typically not pay a higher price-earnings multiple than their company is afforded by the stock market.
- Team – the importance of having assembled a highly-capable team cannot be underemphasized. Many of Yahoo’s acquisitions these days are ‘acqui-hires’, the primary purpose of which is to acquire talent!
- ‘Mini-conglomerate’ – logical fit critical. If you have assembled a company with different business units, you need to be able to make a compelling case as to why they belong together. Otherwise, you make attain higher overall value by selling them off separately to different buyers.
A final note about the current market for selling companies… I have been practicing M&A for 30 years and have rarely seen a market that is a favorable as the one we saw in 2013 and hopefully will continue to enjoy well into 2014. Why is this? In a nutshell: Robust stock market; Low interest rates; Cash on corporate balance sheets (U.S. $3T, Global $8T); Pent-up demand from ‘strategic’ buyers; Private Equity aggressively competing for deals (U.S PE funds $2T to invest).
President’s Message – January 2014
Happy New Year! I hope each and every one of you was able to refresh and recharge over the holiday break. We at NAWBO SV had a lovely December luncheon featuring the string quartet from the Peninsula Symphony, then the Board took the month off from meeting. We are ready to hit the ground running with quality programs and new in-kind partners. Look for announcements in these monthly newsletters and on our website www.nawbo-sv.org.
January is typically the month for making New Year’s resolutions, which are broken shortly thereafter. If you haven’t already, I suggest making a resolution you can stick to – something small, but sustainable. For example, consider changing one behavior for your business and personally, such as contacting one additional client or referral source per day or parking further from your destination to walk extra steps. These small changes can make a big difference in your business, and personally.
We wish you a prosperous 2014. As always, we welcome your input on how to make this a better chapter and would enjoy hearing from you. Thank you for being part of our readership community.
Very truly yours,
Jennifer Dizon
NAWBO–SV President
2013/2014
Small Business Saturday 2013
On November 19, 2013 Jennifer Dizon, representing NAWBO Silicon Valley, and their affiliates, Small Business Saturday Coalition 2013 and Women Impacting Public Policy accepted a proclamation from the City of San Jose for Small Business Saturday, November 30, 2013. President Elect Theresa Oatman and Corporate Partner Director Maxine Goulding were also in attendance along with several local City of San Jose small business leaders and representatives.
Click here to see a video cast of the City Council Meeting.
NAWBO Signs a Second Memorandum of Understanding (MOU) with AMMJE
The National Association of Women Business Owners – Silicon Valley and Asociación Mexicana de Mujeres Empresarias (AMMJE), the Mexican Women Entrepreneurs Association have signed a second Memorandum of Understanding (MOU) in Durango, Mexico focused on continuing the development and expansion of a framework of cooperation and business opportunities between their organizations.
The venture will promote national and international events of both associations through the publication of the events on their respective online calendars. Members of both organization have the opportunity to attend the others events at member rates.
For information about the AMMJE, see http://www.ammjenacional.org
NAWBO Membership Drive
Through April 20th you will save $25 for new and former members. Tell your friends about all the incredible benefits of a NAWBO membership, because WE ARE BETTER TOGETHER.
NAWBO Silicon Valley Chapter Partners with Asociación Mexicana de Mujeres Empresarias A.C.
Joint Commitment Will Expand Framework of Cooperation Between Groups
San Jose, CA – January 12, 2012 – The National Association of Women Business Owners Silicon Valley Chapter (NAWBO-SV) is pleased to announce its new international alliance with Mexican based Asociación Mexicana de Mujeres Empresarias A.C. (AMMJE). This is the first partnership of its kind for any NAWBO chapter in the United States.
While attending the NAWBO National 2011 conference in San Diego recently, AMMJE’s President, Alia Lorena Ibarra de Arreola, invited NAWBO-SV to sign an alliance in recognitionof the efforts made by NAWBO-SV’s Griselda Quezada-Chavez, International Affairs Director, to bring global opportunities to the Members of NAWBO Silicon Valley. Their joint commitment is to continue to develop and expand a framework of cooperation between the groups.
“While I was in Yucatan, Mexico and signing the agreement I felt this was the beginning of changes to come for all business owners,” said Maxine Goulding, NAWBO-SV President. “I was thrilled at the prospect of bringing two women organizations together, not only to learn about business opportunities, but to learn from each other and how we do business in our respective countries. How we do business around the world is changing and we need to change with it or we will be left behind.”
“This alliance brings added benefits for our members to engage in the global marketplace,” said Griselda Quezada-Chavez, NAWBO-SV International Affairs Director. “The opportunities are abundant.”
The International Affairs Department of NAWBO-SV was created in May 2010. This was the first out of nine chapters in NAWBO California and among a few others nationally, to create a specific department dedicated to bringing forth global opportunities for their membership.
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About NAWBO
NAWBO-Silicon Valley is a Chapter of the National Association of Women Business Owners (NAWBO®). NAWBO® is the voice of America’s 10.6 million women owned businesses and since 1975; NAWBO® has helped women evolve their businesses by sharing resources and providing a single voice to shape economic and public policy. The National Association of Women Business Owners® is the only dues-based national organization representing the interests of all women entrepreneurs across all industries. NAWBO-Silicon Valley’s activities include, among other things, chapter meetings, workshops, and seminars and the operation of an website is designed to provide an online community for members of the association. NAWBO- Silicon Valley is the first Chapter out of 9 in California to create an International Affairs Department dedicated to bringing forth international business opportunities for their membership. www.nawbo-sv.org
About AMMJ
AMMJE, a Yucatan, Mexico organization founded in 1965, brings together Mexican entrepreneurs of micro, small and medium enterprises. The National representation in the Mexican Republic includes 45 Chapters in 22 states and a 4,000 membership. Their Mission is to seek “unity of women entrepreneurs to work for better opportunities through participation, enabling the generation of jobs and wealth, and with the vision to position at the democratic level, economic political and social growth.” http://www.ammjenacional.org/