Your business is valued at X. However, it could be valued at a higher value of Y. The difference? It’s maximizing the value of your business by optimizing up to 50 “Value Factors.”
Take the “value gap” quiz to compare your company with other similar companies to determine your company’s value as compared to “Best in Class” companies. To know where you lag is to start the process of identifying where value-enhancing improvements can be made.
Review the specific areas where you’re strong versus where you could improve. The primary categories include personal factors, business operations, industry/market conditions, legal/regulatory environment, financial situation and the economic/M&A cycle.
Given your circumstances, choose the areas that you are confident you can work on, especially those areas that can make the most significant progress and impact upon the value of your company. Don’t overwhelm yourself with everything at once—this is a plan for orchestrated progress leading up to your eventual exit from your business.
Work with your advisors to strategize the most effective ways to implement the plan. The workload can be spread among others at the company, as well as over time. You’re working on multiple fronts that, cumulatively, will make a tremendous difference in the value of your company come exit time.
Your advisors will periodically re-measure your value points and company value, given the areas you’ll be concentrating on. There are multiple moving parts, some under your direct control, some not. The goal continues to be to persist in your efforts toward improvements within your company as you pursue your ultimate goal of a smooth, successful exit strategy.
By proactively measuring your company’s value and identifying areas of potential value enhancement, followed by choosing focus areas to improve, your company should realize an enhanced overall value. This greater sell point will, in turn, result in a stronger foundation for the next phase of your life.