top of page

Know Your Numbers

Numbers, numbers, numbers.  A good friend/boss of mine once told me, “You have to know your numbers.” If you own or run a business and don’t know your numbers, then you are destined for disappointment- whether in your operating performance or when you make that ‘someday’ decision to sell your business.

Here is a not so unusual example. Recently, we did our financial sleuthing into the statements of a prospective client of ours. Many questions came up and he had no answers. It has taken him over a month to get back to us with the answers. “I’m happy that you asked me for those details and I’m embarrassed to say that I do not know what is in my own financials. Now I do. Things have been going well for a few years and I’ve made a lot of money, but I just didn’t pay attention to the details.”

In other words, the company was really a checkbook for him. If there’s a lot of money in the till it’s good but you still don’t know why. And because of this, you don’t know if you could have been much more profitable. Every business has an opportunity to be more profitable…but, you’d better know your numbers.

Recent Posts

See All

Competitive Advantages

Summary: We follow a proven process, are more involved, and have more experience, than our competition. We are proud of our record of selling 100% of the companies that have engaged us through closin

Finder's Fees

It is typical for many M&A advisors to pay a fee to someone who refers a client to the firm (a Finder). RC Advisory Services depends on referrals and adopted this practice years ago. Our firm pays

Beware of Inflated Estimates of Value

We lost a prospective client when another M&A advisor indicated that they could sell the prospect’s company for an inflated value that was about 75% more than our opinion of value. (After considerabl


bottom of page