An IPO can change everything in a business. A carefully orchestrated one can add instant value.
Recently a global network of small business entrepreneurs are changing the game for small business owners - especially regarding business scale and shareholder value.
I have been coaching SME business owners for more than 10 years and I’ve had the pleasure of seeing many build effective businesses.
For some that’s been the achievement of a life’s goal.
But for others it’s been the start. They want to expand their business way further, but face the problem of raising capital. Small businesses are seen as risky for investors and gaining funds to grow can be a challenge.
And then some want to exit. But small businesses generally have a low capital value multiplier and don’t deliver a huge return for all the time and energy. So they stay on - sometimes too long.
For sometime now I have been searching for a solid solution to the two issues of risk and value. I believe I have now found a solution in a global network of entrepreneurs who are changing the game for small business owners worldwide.
Members of the network are experiencing a changed business landscape.
The reduced risk produces a new level of credibility and trust that positions them for new business opportunities - e.g. raising funds for expansion, negotiating global contracts with corporates etc. So they are getting bigger and better contracts.
It also means that shareholder value has increased several times over.
Further the global structure means that the business owner can exit at his/her convenience, smoothly and wealthy.
Joining the network is not automatic - it’s by invitation after a period of due diligence. The criteria are quite high and it can take up to 12 months to complete the process. But the benefits and returns for the owners have been greater than expected.
One of the brains behind the idea is Callum Laing, an expat Kiwi living in Singapore. He and fellow business partner Jeremy Harbour have pioneered a model (agglomeration) that brings together small businesses and lists them on the stock exchange with huge increases in value and access to services and funds.
You can check it out, watch a short video and reserve seats at www.agglomeratebiz.com
p.s. Trust me! When you see what agglomeration is doing for small business owners you'll think it's more "too good to be true" stuff - exactly my response in January of this year when I first met it. Fortunately the people doing the first global agglomeration didn't hear me and went ahead. It's a story worth hearing.