1. Beginning at the “end”: communicating your valuation findings:
a. Best practice: scheduling a two-hour meeting with client to review findings together:
i. Identify strengths and weaknesses of the company; and
ii. Demonstrate how these factors affect value.
b. The wealth gap: is the concluded value sufficient to accomplish your client’s goals?
2. Introduction to and overview of value acceleration framework:
a. Why does exit planning matter?
3. Value Acceleration Phase 1: The Discover Phase
a. Prepare a business valuation;
b. Prepare a personal financial statement;
c. Assess personal goals; and
d. The three gaps:
i. Wealth gap: what you have vs. what you want/need.
ii. Profit gap: Business valuations typically include a financial statement benchmarking analysis. How does the subject company compare to benchmarks? What would this company be worth if the margins were improved?
iii. Value gap: The strengths and weaknesses of the subject company influence the multiples selected in the market approach. What could the subject company be worth if it could command a higher multiple?
4. Value Acceleration Phase 2: The Prepare Phase
a. Focused on addressing risk factors and cash-flow limitations identified in business valuation;
b. Assemble proof: You don’t get credit for it unless you can prove it; and
c. Assemble a master plan broken down as follows:
i. Vision: Defining the “to-be” state. Where are we going and why?
ii. Milestones/key deliverables: Reports, meetings, workshops, and events.
iii. Tasks (less than 90 days): Detailed steps to achieve prioritized actions, with clear responsibility.
iv. Projects (90 days): Break themes into actionable 90-day elements.
v. Themes (1 year): Address areas of improvement for focus this year.
5. Value Acceleration Phase 3: The Decide Phase
a. Decide whether to grow or exit; and
b. If exiting, which exit path makes the most sense given the client’s goals (e.g., family transfer, ESOP, outside sale)?
6. Final Thoughts
a. Maintaining compliance with professional valuation standards while performing value acceleration services.
1. Gain understanding of the value acceleration framework and the three phases (discover, prepare, and decide);
2. Understand and be able to apply the following concepts: wealth gap, profit gap, and value gap; and
3. Learn how to help clients increase business value and liquidity.