In this issue…
Are You Missing The Boat? Now, that is a dated expression, from times ago, when people actually took boats, instead of airplanes, to get to somewhere usually far away.
In essence, it meant you were missing out on an opportunity.
Here’s the opportunity and you decide if you are missing out or not.
Getting your business financially fit. We think this is operating and sustaining a 20% plus profit rate. Others believe 25% to 30% is the right level.
Next, working with other operators and adopting same processes helps ensure continued success and standardization.
The third step, is getting other like minded and operated businesses together to form a bigger union and draw on practices not usually funded in single operator shops.
Now the leap of faith comes in. Together these companies possess a value to investors to allow the organization to remain local but scale. So much so that their growth is amplified and others companies are added to create major market presence and dominance. This leveraged buyout has tremendous upside for the investors and owner/sellers alike.
Of course, the owners continue working and bring along their succession managers to replace them over time.
The opportunity to monetize or liquidate ownership twice in this scenario can be very real. Some will see 1 times Revenue to 2 times Revenue for their well-run company.
What if by 2023, half of the major market luxury Custom Integration market was controlled under this model? Now that would be a BIG Boat to miss.