Agency acquisitions are becoming more common. For any agency, the key to valuation is anticipated cash flow. However, the value (or lack thereof) of an agency's provider contracts is equally important. Thus, it is very important that agents protect their income - and their potential exit value - by investing the necessary amount of resources into properly negotiating their provider agreements.
Read MoreHow can an owner determine a fair price for his/her company, and how can potential purchasers know that they are paying the right amount for a telecom agency? Unlike many other businesses, an agency’s assets are fundamentally limited to future cash flow of a residual commission stream. And that cash flow can be severely impacted by a number of factors outside the control of the owner.
Read MoreSales model, customer base attributes, strategic product penetration and financial track records are just some of the factors that affect the valuation of an agency. This graphic provides a comprehensive range of common attributes, and what factors can ultimately result in higher, or lower valuation multiples.
Read MoreNearly every entrepreneur and investor who has sold their business says there are crucial ingredients to any exit plan. Potential sellers should always have their end-game in mind. A successful sale all comes down to building a company that's smartly run and transparent--like every business should be. Here are some rules to follow to fine-tune your exit strategy.
Read MoreChannel Partners have their hands full just taking care of the day-to-day tasks required to run and grow their businesses. There’s a lot to do, but even when sales are rising and the company’s prospects look bright, there will come a time when it makes sense to pull the cord. Every owner needs an exit strategy.
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