July 7, 2017
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Submitted by Michelle Young at Toptal
Authored by Jeffrey Mazer, Finance Expert at Toptal
Edited by Lynn Patra
- Current market conditions are prime for selling a business. The market is experiencing high multiples due to plentiful dry powder held by private equity firms, record amounts of cash held by strategic corporate buyers, a low interest rate environment, and high prices for publicly-traded equities.
- The time it takes to sell generally ranges from five to twelve months. The determining factors around timing include the size of your business and the dynamic balance between buyers and sellers in the market.
- Valuations are more of an art than a science. The best business valuation methods typically involve cash-flow. Still, the three most commonly utilized valuation calculations are the discounted cash flow, market multiples, and asset valuation.
- The best practices for maximizing shareholder value include the following:
- Make sure the business can thrive without you. You need a management team or key employees that can continue to drive cash flow, especially if you plan to exit the business or will have limited involvement in day-to-day operations. You should also broaden your customer base so that the business is not at risk if a couple key customers leave post-sale.
- Learn the dynamics driving acquisitions in your industry. Many business owners spend their time focused on keeping the business running instead of devoting energy to planning for its sale. Stay apprised of the motivations for financial and strategic buyers in your industry, as this can help you negotiate a higher exit value.
- Hire the right advisors. Don’t do it alone. An experienced M&A advisor can market your company to a larger group of potential buyers than you can access on your own. Early engagement of an independent valuation specialist can provide a market check on valuation and allow you to incorporate value drivers into your pre-sale planning.
- Examine and adjust operational efficiencies strategically. If necessary, it could be worth adopting efficient operating procedures before the sale. This may involve investments in new equipment or technology or changes in staffing.
- Factor tax considerations into sale decisions. Decisions around how to sell your business (merger, sale of stock, sale of assets) should consider tax implications carefully. It is also important to anticipate changes in tax law.
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May 27, 2017
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Submitted by Irene Papuc at Toptal
Authored by Ethan James, Freelance Software Engineer at Toptal
This abridged version was edited by Lynn Patra
This article is for you, the plucky entrepreneur with an app idea in your heart and cash in the bank. Diagrams you’ve scribbled on cocktail napkins will disrupt the world, and dump trucks full of money have been dispatched to your house. To ensure timely arrival, here’s advice for making your production cycle run smoothly.
Why You Need A Project Manager In The First Place
“Computer programs are the most complex things that humans make,” says Douglas Crockford, a senior software architect at Paypal who has pioneered various cool technology. He is someone with expertise about working on large projects. Read more of this post
March 11, 2017
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In a time where ideas and statements are often repeated over and over again, even as they relate to innovative ideas like remote work, I’m delighted to present Breanden Beneschott’s surprising and refreshing psychological insights on improving remote teams members’ communication. This exciting article will help you see obstacles and solutions differently as well as how possible remote work arrangements really are.
At Toptal, nothing about remote work is controversial. Over the last four years, we’ve lived and worked remotely in more than 30 countries. We’ve been running a 100% remote, 90-person strong, venture-funded company that grows hundreds of percent year over year—almost entirely from our laptops, phones, and tablets. Working remotely is a productive and efficient reality that we evangelize to our clients, while practicing what we preach. Hiring remotely removes the constraints of geolimiting and makes it possible to build the best team, regardless of whether members are across the Bay or around the world.
But it turns out some very smart people don’t agree with me. Recently, a post by Paul Graham and a subsequent response by Automattic’s Matt Mullenweg sparked a huge debate about remote work. I circulated Matt’s post to my team, because I think it simply and concisely says what we’ve been broadcasting for years: hire the world’s best talent, regardless of where they live, and everyone wins.
You’re probably already familiar with the textbook cases of successful remote teams such as 37Signals, Automattic, GitHub, and many more, but consider some not-so-obvious examples of times when office-dwellers work from afar:
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Announcement: Due to great alignment in interests, Irene Papuc from Toptal has been invited to feature articles on remote work, business, and other related topics on my blog. So I’d like to introduce her to my readers now and welcome her. By the way, I’ll be posting more in the near future as well. More on this later!