Statistics overwhelmingly indicate that most middle market business owners believe their businesses to be worth far more than they are actually worth, and owners only find out when they decide to exit and experience the harsh realities of the transaction market. Having waited until they want or need an immediate exit, owners often have little time left to impact the value of their businesses, and either settle for much less than they expect, or take short-term measures to try to increase value, but actually destroy value in the process. The good news is that most private companies have an opportunity to double their values if they adopt a disciplined, methodical approach to doing so, over a 3 – 5 year period.
This VOP Value Growth Services process will focus on the reasons for such wide gaps in value expectations between sellers and buyers, and what business owners can do to close the gap years in advance of any planned transactions. The benefits to the owner are compelling whether any transaction is contemplated, or whether the owner merely wants to operate his/her business in the most efficient, profitable, valuable, sustainable manner possible. The benefits are also important for any company interested in growing by acquisition, both from a preparedness standpoint and from a buy-side due diligence perspective.
We review the concept of Intrinsic Business Value, versus various other measures of market value, the many drivers of intrinsic value, how to assess them, how to develop methodical approaches to improving them, and how to measure progress. We’ll explore qualitative versus quantitative drivers, the element of risk and its impact on value, and how to build the long-term sustainable value that will make the business “transaction-ready” whenever the timing becomes appropriate.
We encourage you to contact us for more information.