For those entrepreneurs watching in bewilderment as one of their peers rakes in $19B by selling their mobile app to Mark Zuckerberg’s Facebook this week, I feel compelled to drill down on the numbers, key performance indicators, and intellectual property to discover this deal’s secret formula.
All of the normal computations associated with earnings, multiples, and key performance indicators (KPI) we teach entrepreneurs to focus on as they grow their businesses and build value, simply don’t work in this deal. The more I looked at the WhatsApp business model, the more I was convinced there was a secret formula in their business valuation method. Read more…
Holly also founded ExitPromise.com and to date has answered more than 2,000 questions asked by business owners about starting, growing and selling a business.
Latest posts by Holly Magister, CPA, CFP
- Understanding the Business Buyer Types When Selling Your Business - April 12, 2019
- How to Prepare and Include the Business Owner’s Family in the Exit Planning Process - March 14, 2019
- How to Prepare for Due Diligence When Selling a Business - February 12, 2019