4. Vision Matters – “It is a terrible thing to see and have no vision”, Helen Keller
Successful transactions are the result of selling a vision. Successful entrepreneurs have an intuitive and contagious belief that their company is special. Often they believe they have a higher purpose then simply building a company.
It is vital for an entrepreneur to not only have a vision but also to be able to sell that vision. Without vision entrepreneurs are simply selling trailing 12-month earnings. The ability to articulate future potential and a path to capital appreciation is vital. The most successful transactions result when the buyer becomes convinced that the business owner’s vision is achievable.
When selling your business translate your vision into future financial results to obtain a premium valuation.
5. Passion – “It’s so hard that if you don’t have a passion, you’ll give up.” Steve Jobs / “Passion is the genesis of genius.” Tony Robbins
If there is one trait that separates entrepreneurs from mere mortals it’s passion. Passion is a prerequisite to being an effective leader. Entrepreneurs with passion have the ability to keep their eyes fixed on the mission, even when dealing with the daily distractions, hurdles and frustrations of running a business. They inspire everyone around them, including shareholders, customers, employees and vendors. Their enthusiasm is infectious and their team doesnt get easily sidetracked. A buyer who shares an entrepreneur’s passion is a buyer who “gets it” and usually is willing to pay a premium.
Take the time to talk and listen to your M&A transaction team to confirm they understand and can articulate your passion and confidence.
In the upcoming parts of this series I will share 6 more lessons I have learned about the factors that contribute to successful business deal making.
Find part two of this article here.