During phase 0 of the Value Accelerator Programme, we work with you to develop your exit strategy. This starts with an assessment of your financial needs and wants after you exit your business, together with an assessment of your current provision. We will also develop a valuation of your business so this can be factored into the financial plans. We will then work with you to determine your preferred exit method (and for some clients a plan B), before putting together an exit strategy. At this point, you will be in a position to make a decision as to whether you would like to continue working with us to accelerate the value creation in your business (Phases I-III). For example, if your future financial needs are well met by your current assets, you may not require additional value development or succession planning. However, if there is a significant shortfall in your assets, then you may want to work with us to maximise, amplify and secure the value in your business. Phase 0 typically involves 2-3 meetings over the course of a month.
Phase I of the Value Accelerator Programme involves maximising the value of your business by improving turnover, profitability, cashflow and customer management. The focus is primarily in sales, marketing and customer service with an emphasis on creating long-term value rather than purely short-term profitability and cashflow.
Phase II typically continues the work started in phase I and adds in additional modules to improve the efficiency and effectiveness of the business operations as well as progressively moving the shareholders away from day to day operations.
Phase III of the Value Accelerator Programme builds on the work started in Phase I and continured in Phase III and adds in modules to de-risk the business for a potential acquirer or new management team or family member.
Phases I-III take at least 12 months in total, but optimum benefit is achieved by most clients that allow around three years. That being said, as long as your business has capacity (or it makes sense to invest in additional capacity from a value perspective), extending this process further only adds to the value you create. The duration is really dictated by your goals – the bigger the goal, the longer it generally takes.
At multiple points through the Value Accelerator Programme we will value the business for you to set a baseline at the start and to track progress (and from your perspective return on investment) during the programme. This does not guarantee the price you will eventually achieve, but offers an accurate guide to value development during the programme. This helps us to adapt the strategy on an ongoing basis to ensure we get closer to your ultimate financial goal.
This is a critical aspect of the programme. You need to have a comprehensive review of your financial needs and wants today and after you exit your business so we can develop an exit strategy with you. That involves understanding how much of the annual profits to reinvest in the business, how much to put into pensions and how much to take out of the business in a way that allows the business to truly provide your ideal lifestyle today, while you’re working, and tomorrow when you exit.
For the majority of successful business owners, their business represents 80-90% of their total net worth, and we need to understand the situation for you in order to develop an appropriate exit strategy and plan.
Once we have identified the starting point (the current business value, your personal situation and your future goals) we can develop a strategy, with your input, to help you get to where you want to be, when you want to be there. We will outline the options to you and help you make a decision about how best to proceed.
Depending upon the findings of Phase 0, you will want to make a decision about how to proceed fonte dell’articolo. At this point, you may be comfortable that there is little work to do other than exit when you are ready. On the other hand, there may be considerable changes to be made for you to achieve your exit goals and from the programme we have mapped for you, you may want to progress with the Value Accelerator Programme with our team of experts helping you.
The value maximisation module is focused on improving turnover, profitability, cashflow and customer management. The focus is primarily in sales, marketing and customer service with an emphasis on creating long-term value rather than purely short-term profitability and cashflow. Not all sales are equal when it comes to building value and we help you focus on growing the kind of profitable sales that increase long-term value.
In somewhat over-simplified terms, this module is where we focus more on increasing the enterprise value of your business. In other words enhancing the profit multiple an acquirer will be prepared to pay for your business. We will take a holistic look at your business and make incremental improvements to your company’s organisation, culture, infrastructure, leadership and management. You will also progressively delegate all of your responsibilities for the day-to-day running of the business. This can be a challenging process for many entrepreneurs unless they are mentally ready for the shift and we have considerable experience helping business owners through this phase.
Having maximised and amplified value, we move onto ensuring that value is retained as you approach your exit. A huge proportion of potential value can be lost during due diligence as acquirers sift through all the details of your business and look for any excuse to slash their offer. As well as the financial loss this can incur, you shouldn’t underestimate the stress and anxiety this can cause. We help you dot the i’s and cross the t’s to ensure this is minimised.
When the time comes we can help you navigate your exit, whether that is a sale or succession.