How to Accelerate Your Company’s Strategic Value
And Why You Need to Do It Now!
Presented ByJoel Strom
IMC“High Cost of Doing Nothing” Event
Larry
Gift to Case School of Engineering designed to foster student innovation and experiential learning opportunitiesLargest-ever donation of nearly $6 million from alumni Larry and Sally Sears to transform electrical engineering education
12 X EBITDA with an Extra Kicker !
Larry made it not just about EBITDA!
Larry Moved his Company from: A nice to have to A got to have!
Larry did it by accelerating his company’s Strategic Value
Larry waited to do it pre-sale It worked but what was his opportunity costs in the years prior to his awakening?
Wherever you are in your business or personal life cycle -Planning a liquidity event in the next 12 monthsOr Planning to grow your business for the next 12 years
Now is the time to Accelerate Your Strategic Value
Strategic Value canaffect the multiple
Strategic Value can make it a “Got to Have”
Strategic ValueImproves operating results and EBITDAIt makes you more $
Strategic Value provides owner options
Strategic Value provides investment insurance
Focus on Accelerating STRATEGIC VALUE like your future depends on it –because it does
Factors of Strategic Value Finance Strategy Operations
The Market
FinanceCore Measure – Consistent and improving performance
StrategyCore Measure – Strength and/or uniqueness in products, markets, geography, processes, business model
OperationsCore Measure – Sustainability
The MarketCore Measure – Positioning and visibility
For Each Strategic Value Factor there are specific Strategic Value Components – SVC’s
Finance SVC’s
Sales/profit/Margin/EBITDA Growth and consistency
Trailing and projected trends
Finance SVC’s
Tracking and reporting Real financial statements No co-mingling Appropriate ERP system Audit or review statements
Finance SVC’s
Controls and measures Metrics established
Monitoring systems in place “Take action” processes
Finance SVC’s
Resources Appropriate financial personnel and management Relationships with appropriate outside service providers Attorney(s) CPA Bank Attorney(s)
Strategy SVC’s Brand Strong "owned" niche Market perception and recognition Strong value proposition Customer driven differentiators Level of innovation
Strategy SVC’s “You own it” Intellectual Property Product Operational processes Exclusivities/contracts Strategic advantages/differentiators
Strategy SVC’s
Products/services/customers Longevity of product
Future potential/backlog Scalability Customer concentration or diversification Defined business growth and product roadmaps
Operations SVC’s
“Real" company practices Strength/utilization of competencies Common and shared vision Risk management process Utilizing operational metrics Operational monitoring processes
Operations SVC’s Management Appropriate management team
Effective team and culture Management succession plan Trucks away from disaster Effective BD and sales processes Outside professional services/ advisory board
Operations SVC’s
Ownership Owner's role
Importance for future success Ability to operate without
The Market SVC’s
Awareness Market input
Positioning Visibility Balance
Step #1Unbiased assessment of the company’s current SVC situation-
Rule #1 - Don’t kid yourself
Step #2Strategic Value Acceleration Roadmap Overall goals/vision Prioritize SVC’s Establish acceleration metrics
Create implementation process Measure results Monitor the market
The SV Roadmap implementation process must become one of the owner’s primary responsibilities
Common Advice:Manage the business everyday like its for sale
My Advice:Manage the business everyday to make itA Got to Have
Common Statistic:80% of Businesses are not ready for sale
Un-Common Statistic:Think how few are Got to Haves
Accelerate your Strategic Value and Make Your business a Got to Have Make more money now Create options for your future Protect your investment Make it about more than just EBITDA
How to Accelerate Your Company’s Strategic Value
And Why You Need to Do It Now!
Presented ByJoel Strom
www.cksadvisors.com480-451-1223
6263 N Scottsdale Rd Suite 390Scottsdale, AZ 85254
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