Maximize Company Value

While most publicly traded companies are operated with a focus on company value, as represented by stock price, most entrepreneurial and family-owned companies are not operated to maximize the value of the company.  Actually, the owners of most small and mid-sized companies don’t even know the real value of their business.

There are four reasons why business owners should focus on increasing the value of their company – even if they never plan to sell their company:

  1. A business owner’s company typically represents 70% or more of their net worth. Since it’s their largest asset, the best way to increase their personal wealth is to increase the value of their company.
  1. Company value is the most objective way to determine how well the company is performing. It’s also the best way to identify and prioritize things that should be done to improve the performance of the company.
  1. Even if a business owner doesn’t plan to sell their business, the company may suddenly be for sale because 50% of private company sales are driven by unplanned events – including disasters, incapacity, death or other life events.
  1. 100% of business owners with eventually exit their company.

Building on our experience in selling more than fifty closely held and family-owned companies, Corporate Performance Group provides specialized expertise and support to help business owners maximize the value of their company.

Determine Baseline Valuation

The first thing we do is develop a limited scope valuation of the company.  This valuation provides a baseline for increasing the value of the company.

Identify Potential Valuation Improvements

Then, using value creation techniques used by investors and private equity firms, our experienced advisors go behind the numbers to identify and prioritize opportunities to increase the value of the company.

Drive Valuation Improvement

After identifying valuation improvement opportunities, we provide transformational change, operational improvement, organizational development, and financial management support to help business owners drive valuation improvements.

Experience

Corporate Performance Group helped:

  • Owner of a manufacturing and distribution company increase the sales price he received for his business by 400% in less than four years.
  • Owners of an oil field products company sell to a larger oil services company. The final sales price was more than double the original offer from the acquiring company.
  • Owner of a specialty manufacturing company restructure and sell a majority interest in the company to private equity investors and key executives.
  • Business owner increase the value of his company by 500% and develop a successor to take over the company before successfully exiting the business.