The Playbook
VIDEO  •  THE PLAYBOOK

Get the Highest Possible Value for Your Company

John Warrillow, founder of The Sellability Score, explains why finding a strategic buyer is almost always your most profitable option.
Advertisement

Video Transcript


00:10 John Warrillow: A strategic buyer is almost always going to give you the highest possible value for your company, because by definition, a strategic buyer, the reason it's called a strategic buyer, is that they have strategic assets that they can bring to bear. So your company is going to be worth more to them than it is in your hands or in the hands of a financial buyer. So that could mean that a strategic has, for example, a sales team around the world that your product could fit into their bag nicely. It could mean that they have geographic reach worldwide whereas you've been focused on a very small market. It could mean that when you jam together your two companies, you can eliminate some headcount and streamline the businesses and reduce the expenses of the two. Regardless, the strategics is gonna have things that they can monetize that the financial buyer won't. Therefore, the strategic almost always pays more for a business.

Last updated: Nov 19, 2013

JOHN WARRILLOW | Columnist | Sellability

John Warrillow is the author of Built to Sell: Creating a Business That Can Thrive Without You and the founder of The Sellability Score, a cloud-based software company that helps business owners improve the value of their company.

The opinions expressed here by Inc.com columnists are their own, not those of Inc.com.