“Nobody wants to buy an entrepreneur; they want to buy the castle the entrepreneur has built.” Bharat Kanodia
Our guest today is Mr. Bharat Kanodia. Bharat has a has a very rich background in the financial world. He values businesses which is a very useful tool in the world of mergers and acquisitions, as well as just general business finance. He has valued over 2000 businesses ranging from real estate, to governmental infrastructure. Some of the unique things he has appraised are things like the Golden Gate Bridge, the Brooklyn Bridge, the Mirage Casino in Las Vegas, and Yahoo. He's signed off on over 4500 valuations with 2.6 trillion in assets globally.
Bharat lives in San Francisco with his family, and he enjoys sailing, golfing, skiing and horseback riding. Welcome to the personal financial strategy podcast brought.
In today’s episode, Bharat talks about his experience valuing assets and the essential ingredients for business growth.
- There is a big difference between valuing a product-based versus a service-based business because a product-based business would tend to have more tangible assets.
- There are three metrics that are most important in valuing any business is growth profit and risk, and if you think of any business in these three metrics, you will never go wrong.
- For your business to be very valuable you have to look at any business from a potential buyer’s perspective which is consistent cash flow and profitability.
- The second thing is driving your business to run on autopilot, however you want to make it happen.
- The most challenging and interesting thing I've ever evaluated is the I love New York campaign.
- The biggest part of my job is just asking questions and to uncover the stories with the questions that I ask.
- The science behind how valuations work remains the same but it is the art that changes.