How do you create a liquidity event mindset that has you dominate and win?
When it comes to your liquidity event, you have one chance to get it right, and you better make it count.
The odds are against us as business owners. Up to 90% of mergers and acquisitions fail. Of the deals that finish, most business owners leave most of their deal value on the deal table.
Who am I, and how do I know?
I was that kid who started his eLearning company right out of school with no money, experience, or team.
Failure became my new best friend as I failed my way forward every day. My saving grace was my grit and passion, which kept me in the game long enough to experience success.
With success came a knock at the door from a sophisticated and experienced buyer. I said “no” to a 7-figure offer and “yes” to learning the art and science of a liquidity event.
Two years later, I said “yes” to a different buyer with a 9-figure offer.
Despite have the same company, people, and service, I increased the value of the company 10X.
Along the way, I created 9-steps that gave me the certainty to capture my maximum value.
One of the 9-steps is the liquidity event mindset needed to dominate and win.
Think of your liquidity event mindset as an invisible force field that protects you. With the right mindset and preparation, you have the tools and insights to win.
What did I do, and how did I do it?
Create A Winning Liquidity Event Mindset By Expecting The Unexpected
Welcome achievement and success when you expect the unexpected — Jeffrey Feldberg
A winning liquidity event mindset has you expecting the unexpected.
You cannot control what happens around you, but you do control how you respond.
The skills you mastered to get you “here” are not the same to get you “there.”
There’s a difference between believing and knowing.
Read and prosper from “5 Stupid M&A Deal Killers That Are Robbing You Of Enormous Success.”
To win in the world of mergers and acquisitions, you must know the rules of the game.
Your roadmap to success is preparation, preparation, and preparation.
Preparation creates a winning liquidity event mindset that gives you certainty. And it’s your certainty that leads the way to has you navigate with whatever arises.
Most business owners believe the value of the deal happens at the liquidity event.
Unfortunately, most business owners are wrong.
The liquidity event process is like looking in the rear view mirror. Instead, the quality and depth of your preparation determine your business value.
Expecting the unexpected becomes a foundation for building a winning liquidity event mindset.
Your preparation gives you the certainty that you’ll do two important things.
First, you’ll deal with whatever arises. Second, you have the certainty that you’ll capture maximum value along the way.
Do you know the one area most business owners struggle with during their liquidity event?
How To Communicate Your Way To Success
If you just communicate, you can get by. But if you communicate skillfully, you can work miracles — Jim Rohn
A winning liquidity event mindset knows when who, and what to communicate.
When you lack a winning liquidity event mindset, you say the wrong things at the wrong time to the wrong people.
Upon reflection, most business owners regret:
- When they told their employees about the liquidity event
- Who was not told about the liquidity event until it was too late
- What investment bankers and buyers heard but shouldn’t have
Both in life and the world of mergers and acquisitions, the currency isn’t money. Instead, the currency is trust.
Your investment banker would rather lose a deal than lose the trust of a buyer. Remember, your investment banker is in business to be in business.
Keep in mind two things. First, you are a one-time transaction for your investment banker. Second, your investment banker and buyer have a large book of business together.
The 9-step preparation process creates a winning liquidity event mindset.
When you’re prepared, you can now connect the dots of you and your business from start to finish.
Preparation crafts your vision, creates your point of view, and identifies strengths.
A winning liquidity event mindset has you tune into my favorite radio station known as What’s In It For Me or WII.FM.
When you tune into WII.FM, you address the needs of the stakeholders in your business, advisors, and buyers.
Think back to how you started your business. Chances are you tuned into WII.FM for your customers. Your liquidity event is no different.
How can you have your stakeholders, advisors, and buyers want your deal to happen as much as you?
Learn how to have a winning liquidity mindset.
Your Future Buyer Knows Everything About You. What Do You Know About Your Future Buyer?
A good decision is based on knowledge, and not on numbers — Plato
When it comes to buyers, most business owners only care if the check clears.
Your future buyer knows everything about you and your business. What do you know about your future buyer?
A winning liquidity mindset has you know your future buyer better than you know yourself.
Read and prosper from “5 Ways To Spot The Best Buyer For Your Business That Will Make You Successful (And Rich).”
Don’t fall victim to the “ready, fire, aim” mentality for your liquidity event.
The offer with the highest number may not be the best offer for you and your business.
Developing the right liquidity event mindset has you look for the right type of buyer.
Buyers come in all shapes and sizes and have different interests and experiences. The point of view from buyers has a direct correlation to the value they place on your business.
A winning liquidity event mindset helps you:
- Classify buyer types
- Identify the needs of each buyer
- Know if buyers are telling you the truth or fiction
If you chose to accept it, your mission is to know which buyer has the best cultural fit with your business.
Developing a winning liquidity event mindset helps you achieve your mission and more.
Speaking of a liquidity event mindset, what else it helps you do?
A Winning Liquidity Event Mindset Protects You And Your Enterprise Value
If you hold yourself dear, protect yourself well — Gautama Buddha
A winning liquidity event mindset protects both you and your enterprise value.
On my journey, I had the certainty that I would capture the maximum value. My certainty came from the 9-steps of preparation that I created.
My liquidity event mindset was key to my success.
Your future buyer hopes and prays that you’ll make a mistake. Every mistake you make leaves your hard-earned money on the deal table.
At the same time, your future buyer is looking for reasons to walk from the deal to save time and money.
Your future buyer can spend hundreds of thousands of dollars on diligence. The last thing a buyer wants is a business owner who is neither prepared nor organized.
A liquidity event mindset that has you dominate and win has you do three specific things.
First, you avoid the fatal mistakes your buyer tempts you to make to lower your company value. Buyers will tempt you with flattery to see if you take the bait.
Second, have you show how you can solve the buyer’s business problems. Along the way, you’ll position yourself to help the buyer have a quicker and easier process.
Third, while you can’t control what goes on around you, you can control your reactions. Yes, a liquidity event can be like a Telenovela with its drama and mind games.
The right liquidity event mindset is like an invisible force field. You protect yourself as you navigate your way to capturing maximum value.
A Winning Liquidity Event Mindset Has You Dominate And Win Through Preparation
Winning is the science of being totally prepared — George Allen
How can you dominate and win on your liquidity event?
Have a winning liquidity event mindset that has deep roots in preparation.
You create the value for your business years before you sign the dotted line.
The value of your business is not created during the liquidity event process. Instead, your business value is a reflection of the depth and quality of preparation.
The 9-step road map I created for my liquidity event gave me the certainty to capture my maximum value.
A winning liquidity event mindset creates success one step at a time. The 9-steps of preparation are like building blocks where one step is the pathway to the next.
The more you prepare, the better your position your company. The better you position your company, the more confidence you have. The more confidence you have, the better your mindset.
Your liquidity event mindset has you show up prepared to deal with whatever comes your way. This includes walking away from the deal table if needed.
Keep your thriving and profitable company forever, or sell it tomorrow.
Both are great options.
When you’re both prepared and have a winning liquidity event mindset, you’re unstoppable.
When a challenging situation arises, and it will, you lean on your preparation and mindset to lead the way.
You don’t bake a cake in one step. A delicious cake is a combination of many small steps that create your masterpiece.
Your liquidity event is the same. It’s your liquidity event mindset that you sprinkle throughout the 9-step road map. The end result is the certainty that you capture the maximum value.
A winning liquidity event mindset captures the maximum value for your business.
The right liquidity event mindset helps you build success from start to finish.
There are five key areas where you need to have the right liquidity mindset to win.
When I said “no” to an unsolicited 7-figure offer for my business, I said “yes” to mastering the art of preparation.
In my journey, I created 9-steps to prepare for my liquidity event. Two years later, I said “yes” to a 9-figure offer. Along the way, I did a 10X increase in my company value.
Today, I help business owners master these 9-steps in 90 days. The end result is a launch plan that provides certainty for you to capture the maximum value.
A winning liquidity mindset gives you the edge you need to dominate and win.
What do you do, and where do you start?
Start with the first strategy and stay with it until mastered. Move on to the next strategy until you’ve mastered all five.
Most business owners believe enterprise value comes from the liquidity event itself. Most business owners are wrong, dead wrong.
If your exit or liquidity event is in a year or five years, enterprise value is from the preparation done today.
You’ve worked too hard and sacrificed too much in creating a successful business. Learn how to prepare so you will have the confidence that you will get what you deserve.
You can do it. I know you can.
Here’s to you and your success.
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This is What Happens When You Have A Winning Liquidity Event Mindset Mistakes was originally published on JeffreyFeldberg.com