For those of you who might be unfamiliar with me, I do M&A for a living—Mergers and Acquisitions.
I take private companies, help them get ready for their exit, take them to market, all the way through exit, and there’s even a lot of work involved post transaction.
So, because I do that for a living, because it’s a topic that’s not talked about enough, and because there’s a lot of gray area around M&A, I get tons of questions all the time.
And one of the questions I get most often, maybe top 2-3 questions overall is:
What’s my company worth?
As you can imagine, it’s pretty difficult to give an answer to this question without a useful mental framework for how to think through this on your own.
So, to put it in perspective for those of you who might be asking yourself this question, I filmed a short video to lay out how I recommend you think about valuing your company
So if you take one idea from this message—and I talk about this a lot—let it be this:
The beginner’s mindset is key.
If you assume what your business is worth, or if you get attached to a particular outcome,
you will almost always be off base.
So keep it simple.
One point in time.
That’s all it takes.
I hope this helps.
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