What is a Controlled Auction Process? In a controlled auction process our objective is to create a competitive market among multiple buyers for the sale of a business. There are three primary purposes of a controlled auction process: To test the market to find the highest sales price; To create a competitive bidding process; To create multiple options for the seller to evaluate.
This week I was fortunate enough to be profiled by the Des Moines Register. It came as a complete surprise and was a nice follow up on last week’s discussion of the philosophy of Aspen Grove Investments. I am grateful to them for doing so, although now I have had my 15 minutes of fame! I am also gratified by the outpouring of support that I received from that article. I heard from many friends
I am often asked about the name Aspen Grove Investments and how I came up with it. It is a somewhat different name in this part of the country and also in this industry where names that are hybrids of “Integrity”, “Global” and “Entrepreneurial” are often over-used. Confucius said: “Ability will never catch up with the demand for it.” I chose the name Aspen Grove Investments centered very much on the quote above and the
Benchmark and Measure Success. This is a critical factor in your Ownership Transition Plan which includes the following issues: Define and measure success; Identify critical industry metrics; Measure sales activity and effectiveness; Track revenue from new or returning customers or markets; and Measure and evaluate customer retention.
By Maurie Cashman Today, we look at Financial Measurement and Management, which includes the following items: Understand and use existing financial information; Manage and reduce company debt; Implement financial controls; and Increase employee productivity. In past weeks, we have discussed how owners can methodically build the business value necessary to achieve the post-business ownership lifestyles they desire. Create a written value-building plan that includes important steps to closing the gap between what you have and
Are you an “Inconsequential Owner”? To determine this answer these two questions: Are you are absolutely critical to the success of your business? Without you, is there a business? Most owners of closely held businesses, if they are honest, would answer “yes” and “no” to those questions. Let’s discuss how to fix that. With some hard work, we can help you become an Inconsequential Owner. Let me explain what I mean.. All owners should understand that
A common denominator of world-class companies is that they perform tasks in the same way – they systemize each and every internal operation. Systemizing is one of the tactics that can be used to build value in your company. Because owners correctly assume that there are many areas that can be classified as internal operations, they can be so overwhelmed by the sheer number of areas to address that they fail to address any. For
How many companies do you find with great management teams and excellent systems, but who do not have a diversified customer base? Their cash flow is dependent on one or two customers. Why would buyers spend millions of dollars on a business only to have those customers go elsewhere after they’ve acquired the company? At the very most, a prudent buyer could structure a buyout to protect against the loss of a key customer, probably
By Maurie Cashman Today, let’s talk about tactics. According to Wikipedia, tactics are conceptual action(s) implemented as one or more specific tasks. Strategy is a high level plan to achieve one or more goals under conditions of uncertainty. Strategy is important because the resources available to achieve these goals are usually limited. So we must choose tactics necessary to accomplish your strategy and figure out how you will implement your decisions. Tactical Planning must support your Strategic Planning.
By Maurie Cashman Business fundamentals are the first value driver that needs to be examined by an owner in building the business value necessary to achieve the post-business ownership lifestyle he or she desires. That first step is to create a written value-building plan that: • outlines what must be done to reach your goals; • makes specific recommendations about how to achieve each task; • designates the person(s) responsible for accomplishing each task; and