We have an old Swedish saying on family businesses; “förvärva, förvalta, fördärva” that translates to above heading. This refers to the challenges meeting three consecutive generations of business owners.
This post intends to give a quick view on why business valuation comes to different results on seemingly similar businesses. Making a financial valuation gives a gross indication, but a number of adjustments needs to be made. Those are the judgment calls. It has nothing to do if being a valuation of a running business, a corporate sale or for new funding.
Two focus areas are predominantly important when creating value and moving the business forward. Eventually to the next level. Sales traction and sales stability is the oxygen and blood of the business.
I rent office space at a tech incubator down-town Stockholm. Being a small business entrepreneur this has been a great solution that add pulse, colleagues and daily inspiration. Surprisingly however, many of my colleagues, including some of the angels and venture capitalists that hangs around our office seems to have a somewhat naïve tune to growing companies. At least if one would like to do it long-term.
There used to be a day when applying for a mortgage was dead-on nerve-wrecking. The tighten-up, 50-something banker in a dark dress looked over the desk at the diminishing applicant with the eyes of a head-principal. No? Yes? No? Maybe. The sound of paper. The keyboard. A claustrophobic room.
If the computer said yes, you’re in heaven. Dreams will become true (as soon as stacks of papers difficult to understand has been processed and signed). If the computer said no…
Digitalization is often seen as challenging and a bit loose. Is digital technology relevant to our business? Do we address digitalization and necessary changes correctly? Do we even understand digitalization and what to prioritize? How do we create a relevant digital agenda and strategy for our company with our specific circumstances and how do we secure a higher return on our initiatives?
At a closed meeting, the Prime Minister Göran Persson simply put his finger in the air and estimated the future cost of replacing the ten Swedish nuclear power stations to be €100 bn. Today, 15 years later that estimation of cost for electricity produced still holds, regardless if it will be nuclear, hydropower, wind power or any other combination of electricity production that will replace current Swedish nuclear power stations.