Case for Building Value
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How Owners Handicap Themselves
-Virtually everybody overestimates the value of their business
-People focus on growing profits, without getting transition-ready
-People view it as a liquidity event instead of an intentional business process
-So they wait too long to get transition ready …. typically takes 2+ years of preparation
-Too busy with today’s stuff, customer issues, people issues, cash flow issues, etc
-Good value-and-profit-building options remain unknown, or out of reach
-Unforeseen events (pandemics, health issues, recessions, divorces, etc.) happen
- People feel trapped in a hamster wheel, burn out, scramble to find a path forward
Instead of building transferrable value, these are the too-often results: (EPI statistics)
- 80% of businesses that come to market don’t sell
- 76% of family business transitions don’t last more than 2 years
- 73% of owners who sell report being unhappy within a year, no matter how much they made
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How Owners Get Traction, Gain Value, Finish Big
- Transition-ready companies are worth more.
- Make the company more sustainable, predictable, transferrable – and profitable
- Get a valuation (start point), and get clear on your intentions (path and end point)
- Get smart about options for getting there
- Build a plan to get transition-ready – which aligns financial, personal and company readiness
- Invest more time working on your company, not just in it
- Start today
The big “AHA”…
- Things that build value, that buyers care about, are the same things that grow sustainable, profitable companies
- Building value brings more time and financial freedom -- before, during, after transition.
- Nothing builds momentum like tangible successes.
- The sooner you start, the more evidence you'll have to claim premium value.
- Being ready helps people deal with unforeseen problems (eg health issues, recessions, pandemics) or other surprises.
- Being ready puts you in the catbird seat - you can operate, grow, or sell – it’s the ultimate freedom.
