Three Things We Learned
We now live in a 'Subscription Economy'
Recurring revenue or subscription-based revenue is a key piece in today's business model. There's even a subscription service for Christopher's new favorite underwear and toothbrush replacement heads. Recurring revenue is king. Buyers love it. Unilever acquired Dollar Shave Club for 5 times it's worth because of the recurring revenue and the beauty of it is the revenue will continue to recur without the original owner.
A big personality is unsellable
It was popular several years ago to have a personal brand. The founder needed to have a huge personality and usually, the company carried her or his name as well. While this was great for top-line revenue growth, it's absolutely horrible for the value of the company. That's the definition of an unsellable company. One way around this is to look for a product that they can start leading with. Instead of Dr.'s Johnson and Johnson's company, they began leading with Johnson & Johnson Baby Powder. They were able to successfully separate themselves from the leaders of the company.
You've gotta niche down
Focus on selling one thing that you are truly a differentiator of. If you think of it from an acquirer's perspective, they are making a build versus buy decision. If your company is cross-selling and has a diverse line to sell and the prospective buyer could just lower their prices to compete, that's what they're gonna do. But if you've got one thing that is really tough to compete with, something that is unique, your business becomes really attractive.