Knowing how to build and monetize market value requires a specific set of skills and knowledge of current market valuations and methodologies. It is what we do every day.
Using strategic wealth creation techniques we have learned from working with leading private equity investors, we help business owners:
Know Value – We determine what a business is worth, and, more importantly, we help the owner understand what drives the value of their business.
We recommend that business owners get an independent valuation of their company every year so they always know what their company is worth. Tracking enterprise value is the most objective way to determine how well a company is performing – and is also the best way to identify and prioritize action steps that should be taken to enhance the company’s performance and value.
We also recommend business owners work with an estate planner or wealth manager to determine how much wealth they need to create in their business to meet their personal and financial objectives.
Build Value – Building on Corporate Performance Group’s experience in helping hundreds of business owners build strong and sustainable companies and using techniques used by leading private equity investors, we help business owners increase the value of their company by improving financial performance and also increasing the company’s valuation multiple.
Most business owners understand that increasing revenues and profits will increase the value of their business – but many business owners don’t know that increasing a company’s valuation multiple can have an even more dramatic effect on the market value of a business.
Protect Value – A study by the Exit Planning Institute found that only 21% of business owners have succession and ownership transition plans in place. Even if a business owner doesn’t plan to sell their business, their company may suddenly be for sale because 50% of small and mid-market company sales and liquidations are triggered by unplanned events – including death, incapacity, divorce, economic downturns, and other life events. Unplanned ownership transitions or liquidations produce bad outcomes for business owners, their families, and their company.
We help business owners protect the value of their company by helping them develop contingency and succession plans. These plans give the business owner a roadmap for:
- Achieving their business and personal goals when they leave their company.
- Ensuring their financial security
- Ensuring the survival of their business
- Minimizing, deferring, or eliminating capital gains, income, and estate taxes
- Controlling how and when they exit their business
Monetize Value – Most business owners think their business will be easy to sell when they want to sell – but getting full value when a company is sold is hard and requires specialized expertise. 80% of small and mid-market companies listed for sale do not sell – primarily because the company cannot be sold for what the owner thinks the company is worth.
With our extensive investment banking experience, we are able to help business owners maximize the value of their company when they recapitalize or sell their company. We work with the owner to define their company’s “value proposition,” develop a recapitalization or sales strategy, and prepare marketing materials that effectively tell the company’s “story.”
Then we market the company by contacting a broad range of potential investors and buyers, including private equity firms, family offices, and strategic buyers.