Today it is our pleasure to interview Mr. Garrett Wilson, a Senior Manager in the Denver office of RGL Forensics. Mr. Wilson specializes in the field of business and security valuation and his work includes financial, economic and valuation analyses for financial reporting purposes, mergers & acquisitions, asset and securities valuations, manager selection, corporate strategy and litigation. Mr. Wilson explains earnouts, working capital adjustments and normalized salary. He goes on to give factors that can improve the value of your business and discusses how long it can take to sell your business. Those are just a few of the topics discussed in today’s interview!
Key Points from our Conversation
- Ultimately the only effective shortcut for a sales process is to plan far ahead for your desired liquidity timeline and work towards that goal with the aid of your trusted advisors by proactively implementing the best practices of a much larger organization into your business.
- Formal appraisal or not, it is essential that you have reasonable expectations for the range of values your business may achieve in the marketplace along with an understanding of the key drivers of that value range.
- There are four main types of funding for a new company: the initial investment comes from your personal funds as the owner or founder; the next level is often money from friends and family who believe in you; then come the angel investors who see potential in the “idea” of your business and provide money to help develop the business; and after that comes venture capital—funding often to expand the business.
- In fact, an essential part of any deal is the preparation phase, which can take several months or longer.