Eroded Valuation

Sam is planning to sell his company. He has incurred huge losses in his business. As he struggles to fend lenders as well as investors, he reaches out to consultant Jacob who is an expert in turnaround..

Sam ‘You know the reasons’

Jacob ‘Who have been your key resources who kept the company spirits, productivity and revenue up all this long’

Sam ‘Rohit, Tom, ¬†Andrew, Lisa… to name a few’

Jacob ‘Are they still with you?’

Sam ‘No..they are no longer with me’

Jacob ‘Here is an issue.. your valuation is not only on physical assets but way you can provide career road map to your most trust worthy performing individuals’

Sam ‘I got preoccupied with self’

Jacob ‘Please bring in old resources at times if you wish to increase valuation’

3 weeks later

Sam calls Jacob

Sam ‘Have included Andrew and Lisa back to team..’

Jacob ‘Great News. Don’t get overboard in descaling and whatsoever it may be, let good resources be with you as much as you can afford them and re-negotiate the terms’