Scale Up Your Business Podcast
How To Measure The Value Of Your Business - With Tim Koller, Partner At McKinsey And Company
The number one question that Nick finds himself asked each day, is “How can I raise money?”, and “How can I increase the value of my business through investment?”.
Today’s guest is Tim Koller, a partner at McKinsey & Company and an expert on value creation and corporate strategy, who’s joined the show to discuss the all-important topic of valuation, and how you can put investment finance to the very best use, in order to see your business’s value soar.
Scale-up is certainly about leveraging finance and investment in order to be able to address more needs, to grow and to develop. But it’s also prudent to use your money wisely, and to make sure it’s being utilised effectively.
What ultimately drives the cash-flow of a company is the combination of how fast it can grow its revenues, and what kind of return-on-capital it earns.
The market is generally very smart about distinguishing companies based upon their performance. Those with faster growth prospects and higher returns on capital, will typically end up with higher multiples.
In the current climate, businesses should be focussing upon ensuring that customers and suppliers are being well taken care of.
A good investor will always bet on the business, and not you as an individual. Selling yourself is useless if you don’t have the correct economics behind your idea.
‘What ultimately matters is how big it can get and how profitable it can be’
’Do you bet on the jockey, or do you bet on the horse?’
‘It’s the strength of the brand that drives the cashflow’
‘An economy like this accelerates the decline of weaker businesses'
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Tim Koller at McKinsey - https://www.mckinsey.com/our-people/tim-koller#
Tim Koller LinkedIn - https://www.linkedin.com/in/timkoller/
Valuation - by Tim Koller (Amazon)
ABOUT THE HOST
My name is Nick Bradley. I’m an entrepreneur, author, speaker and investor.
My background is in growing and scaling VC and Private Equity backed businesses.
Having successfully built, bought and sold a number of companies, and removed myself from day-to-day operations, my focus now is on helping entrepreneurs get to where they want to be, in business and in life. As well as investing in growth businesses and backing turnarounds - with the ultimate aim of creating value from significant capital events.
I’m passionate about personal and professional development - showing up and being the best version of myself ... every day.
My bigger vision is to help bring entrepreneurial skills, experience and mindset to people in developing nations - so they can follow their dreams, live life more on their terms - utilising entrepreneurship as a global force for good.
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