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Succession Readiness Report: Value Enhancement Planning

Succession Readiness Report: Value Enhancement Planning

Synopsis
3 Minute Read

Has your business valuation fallen short of your expectations? That’s where a value enhancement plan comes in.

Find out how you can boost your business’ worth and attract better buyers.

National Leader, Family Office Services

Are you confident your current business plan optimizes its value?

You’ve just received your qualified business valuation, and your business isn’t as valuable as you thought. To drive further value, and get you closer to your transition goals, consider a value enhancement plan.

A value enhancement plan focuses on strategies to increase the overall value of your business. This can lead to a higher sale price, attract better buyers, and make sure your business is in the best possible shape for the future. With the right value enhancement plan, a business owner could expect to see an average enterprise value increase of

By understanding what drives value or hinders value in your business, you can start to look for ways to improve performance. Here are some examples:

It’s a tall order. Many business owners are too overwhelmed and busy with daily responsibilities to start building and executing a value enhancement plan. However, engaging a seasoned advisor can help share the workload, so you don’t have to do the heavy lifting of creating a plan from scratch.

The impact of performance improvement

Consider our client, the owner of a marketing company, who was re-examining their succession plans after a personal crisis. After revisiting their goals, they determined they needed $5 million to retire. But their business was valued at $3 million.

By leveraging our performance improvement team, we evaluated and staged their business to drive value. After the valuation report was updated, the company was worth $8 million — more than double. It exponentially increased the value and blew their original goal of $5 million out of the water.

Digging into the data

“Sometimes, our valuation isn’t what we hoped for. A value enhancement plan can make a big difference. By focusing on areas like profitability, technological adoption, and operational efficiencies, you stand to boost the value of your business. It’s a lot to tackle on your own, but with the right plan, you can set your business up for a stronger future.”

Hussam Malek, Partner, Consulting Services

Ask yourself:

  • What areas of my business need improvement?
  • How can I increase profitability and efficiency?
  • What investments can enhance the value of my business?

We suggest:

  • Thoroughly review your business operations for areas of improvement, including financial statements, operational processes, and market conditions
  • Identify what drives value and create a detailed strategic plan to further enhance it
  • Communicate your objectives and expectations to your team

Take the exitSMART assessment

Is your succession planning on the right track? Find out with our ExitSMART™ assessment tool.

Discover more in the report