REVEALED : BIG BUSINESSES ROUTINELY OVER PAY BY 500%+ FOR SMALL BUSINESSES

 

There is a ‘secret’ that many business owners do not know…..big businesses routinely over pay by 50% – 500% plus to buy all sorts of businesses for their ‘own special reasons’.

Selling a company is not like selling a house.

It is a lot more complicated which means there is a lot more opportunity if you know how to find it so you can maximize your exit.

Google paid an outrageous fortune of $1.65 billion for YouTube even though the majority of YouTube’s traffic already came from Google!

Facebook bought WhatsApp for $20 billion…yes billion! When it only had $10 million in revenue and was losing money! They had their reasons…..

Think that is not true for ‘dull’ or ‘ordinary’ businesses? You would be wrong!

At different times McDonalds and Pepsi have both paid 10x or 100x premiums to purchase small regional restaurant chains in which they saw enormous potential.

Earlier this year, the world’s largest drinks company, AB InBev, bought Camden Town Brewery, a London based brewery, for in the region of $120 million.

AB InBev own brands like Stella Artois, Fosters, Budweiser and Becks.

Camden Town Brewery was founded by Jasper Cuppaidge in 2010 and produces craft or specialized beers. Their brands include Hells, Pils and Pale Ale.

They currently sell 12 million pints across 1,000 pubs, bars and restaurants.

The last accounts filed for the year ended 2014 show sales of $14 million with a profit of $480K.

So how can a buyer pay in the region of $120 million? It does not make sense…..

The business ‘should’ be worth, at best, $480k x multiple of 10 so around $5 million?

It is a quantum leap from $5 million to $120 million!

What is interesting is that 5 months prior to the sale, they raised $4.2 million by selling a 5% stake to 2000 private investors via equity crowdfunding giving the business a valuation of $82 million.

So AB InBev paid in excess of 3000% more than the ‘normal’ valuation if $120 million is the figure they paid.

Even if we assume the lower figure of $82 million, that is still a staggering 2000% more than the ‘normal’ valuation.

Jasper and his family and 3 best friends received a payout of $112 million to enjoy….financial security and freedom. They achieved their goal to maximize their exit.

However Jasper intends staying to leverage AB InBev’s resources as they intend to build a second factory and the products will now have access to a global distribution network.

Perhaps we now see a glimpse into AB InBev’s reason for the purchase..?

So you now know the ‘secret’ that big companies routinely pay in excess of 50% – 500% plus to buy all sorts of businesses for ‘their own special reasons’.

Is your business ready so you can maximize your exit?

Are you prepared so when a major player comes knocking at your door, you can answer all their questions?

Can you also answer the critical question, why they would choose your business compared to your competitors?

Go to http://www.maximizeyourexit.com/sell-smart-net-what-youre-worth to discover the secrets on how you can maximize your exit and achieve the financial freedom, like Jasper and his family and friends’, that you deserve.

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