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What’s your personal-business end game?

Berkonomics

Your skilled employees? Your distribution channel relationships? It will help you to explain the value of your business to potential investors and certainly help focus your efforts as you advance toward that goal of a liquidity event in your future. Would it be your intellectual property?

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Why not share your liquidity success with those who got you there?

Berkonomics

Some companies, especially those financed by angel or VC investors, have good, formal stock option plans with properly priced options set to reward all employees and managers in the event of a corporate sale. So, I wrote into the final distribution instructions a surprise five figure bonus for each of the five executives.

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Envision the end game. Advance toward the goal.

Berkonomics

Your skilled employees? Your distribution channel relationships? It will help you to explain the value of your business to potential investors and certainly help focus your efforts as you advance toward that goal of a liquidity event in your future. The liquidity event and beyond'

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Finding a strategic partner, investor or buyer

Berkonomics

Some potential buyers or strategic partners might want your intellectual property, or revenues, or profitability, geographic advantage, or sale force, or your employee base. Think carefully. Select the most likely reason you’d find if you could “get into their heads” and see what they might value most.

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Everything you do adds or reduces company value

Berkonomics

Minor decisions, such as replacing employees who have left the company or replacing equipment needing updating, are usually considered operational in nature, and unless the business is changing direction, not relevant to this test. Let’s list some of the many reasons your company might find to make an acquisition.

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Share your success with those who got you there.

Berkonomics

If there has never been outside investors to organize such an option program, many CEOs never get around to creating a system for rewarding employees in a sale. . Yet there was no formal reward in place other than the employee stock ownership program (ESOP) which was set to pay all employees for their accumulated shares at the exit.

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Think of your exit as you commit your resources along the way.

Berkonomics

Minor decisions, such as replacing employees who have left the company or equipment needing updating, are usually considered operational in nature, and unless the business is changing direction, not relevant to this analysis. Each decision you make to commit resources affects the future value of the business to some degree.