What Is A Colorado Business Broker And What Do They Do?

This podcast will talk about a little pain point that we have within our organization, and it's a business valuation calculator. People are looking at tools and real estate like Zillow, or they look at Kelly blue book on cars and they say"Why don't we have an online business valuation calculator?

You've been doing this for so long and, in reality, we'd love to. The problem is that it's difficult. There are some really good baselines, like earnings and revenue, and we could discuss guidelines and how they will look like. What makes it so difficult is you can have two businesses that have the same revenue and earnings, worth significantly different multiples. In reality, two, three X one another, and almost not even as close. This is due to intangibles.

There are a lot of things that go into the business of a company such as Intellectual property rights, defensibility tools that create an even more complicated discussion that just asking how much are you making and are you worth five times this hypothetically. We're now working on it. It's probably too early to talk about it, but we're working with an incredible company to solve this problem and will come up with a solution shortly. However, in the meantime, if you have any questions regarding how to increase the potential of your company or how much your company is worth, why not contact us by calling Freedom Factory. We're looking forward to talking with you soon.

How do I prepare my business to sell?

Entrepreneurs are often confused about how to prepare their businesses to sell. So you have decided you'd like to sell your business. What do you do now? Well, the first thing you must do is get your home ready for your business to sell. Therefore, you should get two or three years worth of tax or tax-related reports.

And financials and put those together. Take them to your accountant and have them ready to go. In the second, if you've never made an operational manual, this would be the perfect opportunity to create one. You're familiar with how your company works, you know how different departments work, but when you sell your business, we want for it to be as effortless for you to transfer the business to a new owner.

And that value is going to be reflected in the sale price. So , get your operations manual as well as new job descriptions together and get your house in order. The final piece is find, you know, how to put your team together. Find a reputable appraiser and broker. Find out the value of your business. Begin to write the story, and then decide how we going to take it to market?

When do we plan to launch it? You know, what's the current tax climate. You know, how can I recast my financials? And what I mean by that is really straightforward. They're going to, we're going to use you EBIDTA or your accountant can do the same thing and then translate it into the seller's discretionary cash flow, which is.

A fancy way of saying all the money business earns as you file your tax returns. It's a game to reduce isn't it? Tax evasion is a crime. Tax avoidance is a smart strategy. So you're seeking to be as tax-efficient and pay as little tax as possible. We need to translate that, you know, into certain of your other expenses depreciation, for instance certain discretionary expenses and then add it back in to maximize the value accurately.

Flag all the value that your company creates, and that's gonna bring about a significant change. Also, do you know what field are you going to be in? How do we maximize your multiple? And there are methods to accomplish this. Consider the kind of field you're working in. Figure out, you know all your financials.

Put an operations manual together to ensure that the transition is as smooth as is possible. And all of this will be will be easier when you put the right team. Find the most qualified appraisers, find the right brokers to assist you in preparing your business for sale, and if you need assistance with this contact us right here, by calling Freedom Factory.

When is the right moment to sell my company?

This is a crucial topic and when is the right time to sell your business? This is a little more art than science. And ultimately it's kind of a gut check of the things you've learned. We're outside. This is my backyard. mountain house , and it's a bit of my home.

The first thing I'm going suggest to you is get an escape. Get out of the office. Escape the daily grind whether with your family or out. Find a area where you can go, whether you love to fish or ski , or go to the mountains or go to the beach , and whatever you like, go to a place and switch your place of residence and find a place where you're comfortable.

And then think of your company. Then I take a look and I analyze it using three areas. First, am I here and am I clear? Am I really into my business? Are I doing my best to serve my company or does my business serve me? In my opinion, life is too short to live where you are serving your business. Your company is your personal road to greater freedom and prosperity.

And the way I define freedom is pretty easy - doing whatever you like, whenever you desire, and as often as you'd like, with whom you want. And if you're enjoying what you're doing and you think, God, this is amazing, and I am in the right place and am focused and I'm doing what I'm supposed to do in the way I think about selling my businesses to fellow entrepreneurs, then that's awesome.

The time is not right to sell your company. If you're not sure about that, I would consider a bit more and then dive in and say, Do I possess the correct vision? Have I got a crystal clear view of where I am going?

I'm planning to expand my business over the next two, three, or maybe even five years? What do I need to do to get over it , and also feel fantastic and confident that I've accomplished what I've accomplished? If your company is growing at 40% per one year or even 50% per year, then you've probably got an enlightened view. You're probably doing really well and you're probably feeling in flow. On the other hand it's possible that you've grown at 5% over the last five years, then it's more difficult, and perhaps you can find someone who does it better than you.

When my business is growing at five percent, I'm planning to sell. I'm saying, okay, I'm in need of an operator. It's more of a strategic person. How do we concentrate on making something incredible, and you're right on target and focused, but your growth rate will be a big indicator of this.

The final point is, you've done what you were born to do if you, were to start your own company, when I came to the business brokerage business, i was aware that I wanted to alter the way that entrepreneurs buy and sell their businesses. I've founded three of the largest brokerages. I hired, at least one acquired them to get the staff, and have really made it a much effective market. That's exactly the goal I set out to accomplish when I arrived to this place.

But if you left your current business and think about it for a moment, would you feel resolved or would you feel as if you weren't able to finish what you came there to do. Then I re-read it and I say that's fine, is my business serving me. Do I feel clear and focused every day?

Do I have anything I need to accomplish and do I have new ideas to implement the idea? These are the questions which will help you figure it out. It's a little bit of an unreliable science, but in the end, it's an exercise in gut-check. What do you think? Do you think it's time to sell your company?

If I'm thinking about selling it the item, it's usually six months too in the past. So if you have any other questions on this or any other topic, it would be our pleasure to assist you with your questions here at Freedom Factory. So just give us a call


Check out https://freedomfactory.com/ will give you a free business valuation to find out the worth of your business. Denver business broker Ty Tysdal will help you to prepare your business for sale.


Call Freedom Factory for a free business valuation

Freedom Factory
5500 Greenwood Plaza Blvd #230
Greenwood Village, CO 80111
Phone: (844-629-8258)
https://g.page/freedom-factory-denver


Email Tyler Tysdal Best [Colorado business brokers
https://www.linkedin.com/in/tyler-tysdal
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3 Strategies to Increase the Value of Your Company Today

There are three methods to maximize the value you get when you choose to sell your company. The first goal is to maximize your multiple. What I refer to is that there are multiples that differ for each Businesses and we'll be able to discuss what that might look like.

Watch this video on Youtube: https://youtu.be/-Sb5SuC1VXk

As an example I had a business that came to me to sell and it's name was excavation. It began out as an excavation company, But in the past two decades, the company has transformed into a construction firm however, 80percent of its revenue were from construction.

The company is now proving that Multiples refer to this size of business , and also multiples, which means the amount of times earnings the company? If your multiple was two plus your profits were $1 million your business is worth 2 million or more. whatever your capital assets. The excavation company's multiple was approximately two-to-two and a half.

However, if it was an engineering company that it was, it would be between four and five, which is why it changed the brand name of of the of the. We altered the position of the company. We were able discern it from the construction multiples, but not on the excavating multiples.

Second, you need to change your financials. Now , you must pay taxes and are owed an EBIDTA as well. Your EBIT is intended to be minimized. The way we work is to create pivot tables, and then translate it into the seller's cash flow discretionary. This accurately reflect all cash and the value that your business and the value your business creates.

This is why you should consider bringing back your board meetings from Hawaii as well as your memberships to health clubs and your cars, Et cetera, Et Cetera, et.c., you are able to capture all the value. Therefore, recasting your financials is crucial. The third element is maximizing your intangibles. What I refer to is the moment a customer who wants to know more about your business, They'll be asking questions. If we get answers to those questions in advance and they tell us that they're able to answer them, then how does the business function? And he replied "Well, it's A B, C and D."

We will send you the operations guide after this conversation and contact us with any queries. This kind of approach will help provide more answers and is likely to generate an environment that is more conducive to learning. Let's say the multiple range was from three to five times earning, that is, in the case of one million dollars in earnings, or 3 to five million, once you have your intangibles it's going to be a great way to climb to the top.

And then get a net that is over four five, four and an hour and get a net over five, four and a half. If everything is in chaos If everything is in disarray, you'll be at the lower end of the spectrum.

Therefore, getting your intangibles right is crucial. Keep in mind that when you're trying to market your business It's a team game. What is the value of my business? One of the most frequent questions we are asked the most frequently is: what's my business worth? For those who are like me then entrepreneurs are so keen on increasing their businesses. business , and what it's worth isn't something that comes up very often.

I am always focused on increasing sales and think that when I increase sales and manage it effectively, The business will grow and improve, and it's likely to appreciate more. That's the general rule. But it's still not answering the question of how much it's worth. Many entrepreneurs say, okay how do I get started? When I consider what to start with I consider earnings.

Most people talk about EBITDA which refers to taxes. and it can be adapted in the cash flow of the seller's discretionary. You must figure out the value of your business worth based on the amount it makes. The value of a product is determined by its earnings, and this varies.

There are a variety of variables that determine your worth, such as what field you are been in for, and how long Have you had it in the past? Do you have a problem with concentration? That means that do you receive 80percent of your sales from Walmart, Do you receive less than 20 percent of each customer? There are many intangibles involved.

If you run small-sized business we'll call it million dollars in earnings. It's generally about 3 to 5 times the earnings. This is incredibly rough, and provides you with an image that you could make use of. We could answer the question in more specific detail When we consider it when we look at it, what that actually implies is that you're dealing with a customer problem with concentration Let's say that you've got something to do with it, If you've got some, or have competitors who are taking your business away with a vengeance, and you're likely end up on the lower side of the spectrum.

In the meantime, if you've got any intellectual property that's legally protected or you've been around for a long time, or you're able to sustain your investment, competitive advantage. The way I consider it is the size of the moat surrounding your business , or how large is the moat that protects you? You'll be on the upper end of the aforementioned.

There's always a spectrum that the intangibles can take you from one end to the other of the range. One of the biggest fears that many entrepreneurs are afraid of is What happens if I underestimate the value of my business when I decide to sell it, and what if this is my biggest asset? Many people, that the house is the biggest purchase you'll ever make.

Now, if you're an entrepreneur like me. It's not true. Your business is purchasing your business and then selling it, You're trying to think specifically, How can I avoid leaving money in the sand. In the opposite, you do not want to price it too high and lose people who aren't interested. To get to a good market value is vital. It's basically, how do you get the right team together and ensure that you're pricing your business correctly? It is based on the market it in accordance with market.

There are many intangibles that occur. For instance, let's say the tax system is going to alter. It's possible that we'll get an entirely new president this year, or perhaps we'll see an overhaul of tax law that will impact capital gains over the long term. This could make you want to close your account before the close of the year. In the event that there are artificial structures ceilings or floors that really impact the timing of our markets.

Therefore, we should stay very focused on that. In general, I believe that appraisers are the best choice and appraisers can be really useful for estate sales. for those things that aren't run by anyone else. it. The issue with appraisal value, particularly for small-sized businesses, is there's no willingness to accept a payment for it. If an appraiser states your business, which is worth one million dollars will be worth five million and no one is willing to issue an appropriate check, It's not going to bring you any good. For me I purchase and sell businesses all the time.

This is all I do. I would be adamant about an all-time business broker All they focus on is similar sales over the last six months, with companies that are similar to yours. Then I would focus on market data since almost no other area is more crucial than for small businesses.

The role that a broker plays is crucial in this scenario because you're selling your home and suppose you're in the market for a broker. the most reputable broker in your local area in comparison to a standard broker. Perhaps he'll be able to negotiate 5 or 10% more. The reality is that the appraiser will be in, and they'll for you to determine an appraisal price, but it won't be capable of selling it at a higher price.

This means that in some ways the real estate market is greater is a commodity, but for companies, for instance could change the value of EBITDA to cash flow. When you've got a variety that is similar to We used to use between three and five times the earnings. If you are able to find an broker who takes you out of three, and instead gets you to Five and your company earns $1 million, you've just earned a million and a half more thanks to an the tax rate of 23% effective.

This is awesome. This is $1 million more money you can put into your wallet. Or , for instance, occasionally I've dealt with businesses which were not in the correct category and began their journey there. However, they may have changed in the course of your business's growth over the past five or ten years to an entirely different classification for your industry. Then it's going to the market, creating the pieces together, and increasing the potential of your business.

These are the aspects that matter when it comes to selling your property. I hope this helps in determining the value. If you'd like to contact us for a chat at Freedom Factory or if we are able to help in any way at all, we'd love the opportunity to assist you.

Contact Freedom Factory

At Freedom Factory®, we have experienced and witnessed the explosive results of entrepreneurs aligning passion and purpose to create extraordinary value. However, most entrepreneurs have no idea how to maximize the value of their business and move on to the next chapter of their lives. That’s where we can help.

Freedom Factory® has radically disrupted the way high-growth, lifestyle companies are bought and sold, which historically was a horribly inefficient market. When I sold my first company in the 1990s, I went to several investment banks and sold my business to one of less than five companies they called. Looking back, I see exactly how much money I left on the table and knew that there had to be a better way. The bottom line is that entrepreneurs don’t speak banker, and bankers sure don’t speak entrepreneur.

https://tylertysdal.academia.edu/

Contact Tyler Tysdal at Freedom Factory

Freedom Factory
5500 Greenwood Plaza Blvd., Ste 230
Greenwood Village, CO 80111
Phone: 844-MAX-VALUE (844-629-8258)
https://www.freedomfactory.com/

Freedom Factory Managing Partners

Tyler Tysdal https://www.linkedin.com/in/tyler-tysdal
Robert Hirsch https://freedomfactory.com/about-robert-hirsch

Who is Tyler Tysdal?

Tyler Tysdal is a lifelong entrepreneur who first discovered the joys and challenges of self-employment at the age of 14. Tyler Tysdal was a collector and trader of baseball cards and his budding entrepreneurial spirit spurred him to create Triple T’s Sports Collectibles, a national mail-order trading card and memorabilia business that found a wide audience through ads in trade magazines. While market inefficiencies were numerous in this pre-internet era, a young Tyler Tysdal experienced his first big business win with $14,000 a month of profit result. A lot of money for 14. It hit him during a ride with his mom to the post office to mail dozens of card shipments: He would likely be an entrepreneur and investor the rest of his career.

Additional Websites to Follow Tyler Tysdal

https://www.youtube.com/channel/UCIlOFFMqyOo1CjtA0Uwp4qw
https://soundcloud.com/tylertysdal
https://twitter.com/tysdaltyler
https://www.instagram.com/tyler_tysdal/
https://sites.google.com/view/tylertysdal

Watch Podcasts on Instagram

Additional News Sources:

Colorado Businessman Tyler Tysdal Promotes Business With Instagram Channel - Digital Journal

Denver Business Broker - Sell Your Colorado Business (tylertysdal.org)

 

Check out this podcast from Tyler T. Tysdal

3 Critical Steps to Get Right When Selling Your Business

Watch This Video on Youtube

https://youtu.be/9T_LxOKsh_4

Simple Business Valuation Calculator

Let's discuss a small problem we face within our organization that is a business valuation calculator. People are looking at tools and real estate such as Zillow or take a look at Kelly blue book of cars and think "Why don't we have an online business valuation calculator?"

We've seen you doing it for a long time and, in reality, we'd like to. The problem is that it's difficult. There are a few excellent baselines, for example earnings and revenue, and we can discuss guidelines and what they look like. What makes it difficult to achieve is that you can have two businesses with the same revenue, same earnings, but with hugely different amounts. In reality, two, three X one another, and almost not even far apart. This is due to intangibles.

There are a lot of things that go into the business of a company such as intellectual property and defensibility software and more that create an extremely complex issue rather than simply, Hey, what's your income and are you worth five times the amount you're imagining. We're now working on this issue. It's probably too late to discuss the issue, but we're currently working with an incredible business to address this issue and will come up with a solution shortly. In the meantime If you have any concerns regarding how to improve the potential of your company or how much your company is worth, then why don't you contact us by calling Freedom Factory. We're looking forward to talking with you shortly.

How can I prepare my company to be able to sell?

Entrepreneurs are often confused about how to prepare their businesses to sell. If you've made the decision that you'd like to sell your business. What do you do now? First, what you'll need to take care of is get your home ready for your business for selling. Therefore, you should obtain three or two years of tax or tax-related documents.

Also, financials and put them together. Take them to your accountant and have the documents ready for. In the second, if you've never made an operational manual, now is the perfect moment to start. You're aware of how your business is run, and you know how different departments work however, when you decide to decide to sell the business you'll would like ensure that it is as effortless as possible for the transition to the new owner.

This value is likely to be taken into consideration in the price of sale. So , get your operations manual and job descriptions together , and make sure your home is in order. The third step is to discover, well, the right team. Find a reputable appraiser and broker. Determine the value of your business. Create a story and then figure out how we going to get the business to market?

When will we introduce it to the market? It's all about the current tax climate. What can I alter my financials? What do I say by that is straightforward. We're going to use the information from your EBIDTA or your accountant's ability to do similar things and then translate it into the seller's discretionary cash flow. That is.

A fancy way of describing all the money business earns during the process of filing tax returns. It's all about minimization you think? Tax evasion is a crime. Tax avoidance is a smart strategy. It's why you're seeking to be as tax-efficient and pay as low a tax as possible. We have to translate that it's from the non-cash costs you incur such as depreciation certain discretionary expenses and then add it back to increase the value.

Highlight the value your company creates which will have a major impact. Also, do you know which industry you planning to enter? How do we maximize your multiple? And there are methods to achieve this. Think about the field you're working in. Determine, you're aware all your financials.

Make an operational manual to help make the transition as simple as is possible. All of this will be can be a huge help in forming the best team together. Find the most qualified appraisers, locate the right brokers to assist you in preparing your company for selling If you require assistance with this get in touch with us right here, by calling Freedom Factory.

Is it the right moment to sell my company?

This is a crucial issue and when is the best time to sell your company? This is a little more of an art than science. It's basically an assessment of the things you've learned. We're outside. This is my backyard. mountain home and is a part of my favorite place.

The first thing I'm going recommend to you is some fresh air. Leave the workplace. Escape the daily grind or with your family or out. Find a area where you can go, no matter if you like to fish, ski or visit the mountains or visit the beach or whatever else you like, go to a place and change your destination and find a place where you are comfortable.

Then think on your own business. When I think about it, and then consider it in three ways. The first is, am I here and am I in the right place? Are I actually in my business? Are I doing my best to serve my company or is my business serving me? In my opinion, it's too short to live in a place where you are serving your business. Your company is your personal road for more freedom and prosperity.

What I mean by freedom is quite straightforward - it's about doing whatever you like, whenever you desire, and as often as you'd like and with whom you'd like. And if you're enjoying the work you're doing and consider, God, this is amazing and I'm there and I'm in the right place and doing exactly what I'm supposed and that's how I think about selling my businesses to other entrepreneurs This is awesome.

The time is not right to sell your company. If you're unsure about this, I'd consider a bit more and then I'd take a deep breath and ask, Do I possess the correct idea? Have I got a crystal clear idea of where I am going?

I'm planning to expand my business over the next three, perhaps up to five? What can I accomplish to overcome it , and also feel fantastic and feel that I've achieved what I've done? If your company is growing by 40% per an year, or 50 percent per year, then you've probably got an enlightened view. It's likely that you're doing a great job and are probably that you're in the flow. However it's possible that you've grown at 5% over the past five years, then it's slightly more challenging and you can find someone who does it better than you.

When my business is expanding at five percent, I'm planning to sell. I'm thinking, okay, I'm in need of an operator. My style is more of a strategist. How do we concentrate on creating something that's incredible, and you're right on target and focused However, the rate of growth is a good indicator of the fact that.

The last thing to remember is that you've accomplished what you were born to accomplish if, when you started your company, when I began my business brokerage business, i was aware that I wanted to alter the way entrepreneurs purchase and sell their businesses. I've founded three of the biggest brokerages. I've either hired the third one, bought them to attract the right people, and I've created a effective market. This is the thing I wanted to accomplish when I arrived to this place.

However, if you quit your current company and thought about this for a while and then decide to leave, would you feel happy or would you feel as if you weren't able to finish what you were there to complete. Then I re-read the situation and thought I'm okay does my company serve me. Are I focused and clear each day?

Do I have any remaining tasks to do and do I have fresh ideas for implementing that idea? These are the questions that will guide you through it. It's a little bit of an unreliable science, but all in all, it's an exercise in gut-check. Which are your thoughts? Do you think it's the right time to sell your company?

If I'm thinking about selling my business the item, it's usually six months too to be. If you have other questions regarding this, or something else that you need help with, it's our pleasure to assist you us here in the Freedom Factory. We're waiting for you to give us a call.

Contact Freedom Factory

At Freedom Factory®, we have experienced and witnessed the explosive results of entrepreneurs aligning passion and purpose to create extraordinary value. However, most entrepreneurs have no idea how to maximize the value of their business and move on to the next chapter of their lives. That’s where we can help.

Freedom Factory® has radically disrupted the way high-growth, lifestyle companies are bought and sold, which historically was a horribly inefficient market. When I sold my first company in the 1990s, I went to several investment banks and sold my business to one of less than five companies they called. Looking back, I see exactly how much money I left on the table and knew that there had to be a better way. The bottom line is that entrepreneurs don’t speak banker, and bankers sure don’t speak entrepreneur.

https://tylertysdal.academia.edu/

Contact Tyler Tysdal at Freedom Factory

Freedom Factory
5500 Greenwood Plaza Blvd., Ste 230
Greenwood Village, CO 80111
Phone: 844-MAX-VALUE (844-629-8258)
https://www.freedomfactory.com/

Freedom Factory Managing Partners

Tyler Tysdal https://www.linkedin.com/in/tyler-tysdal
Robert Hirsch https://freedomfactory.com/about-robert-hirsch

Who is Tyler Tysdal?

Tyler Tysdal is a lifelong entrepreneur who first discovered the joys and challenges of self-employment at the age of 14. Tyler Tysdal was a collector and trader of baseball cards and his budding entrepreneurial spirit spurred him to create Triple T’s Sports Collectibles, a national mail-order trading card and memorabilia business that found a wide audience through ads in trade magazines. While market inefficiencies were numerous in this pre-internet era, a young Tyler Tysdal experienced his first big business win with $14,000 a month of profit result. A lot of money for 14. It hit him during a ride with his mom to the post office to mail dozens of card shipments: He would likely be an entrepreneur and investor the rest of his career.

Additional Websites to Follow Tyler Tysdal

https://soundcloud.com/tylertysdal
https://twitter.com/tysdaltyler
https://www.instagram.com/tyler_tysdal/
https://tylertysdal.com/
https://sites.google.com/view/tylertysdal

Watch Podcasts on Instagram

Additional News Sources:

Colorado Businessman Tyler Tysdal Promotes Business With Instagram Channel - Digital Journal

Denver Business Broker - Sell Your Colorado Business (tylertysdal.org)

 

Check out this podcast from Tyler T. Tysdal