Building Value in You Business
- 1. Building Value in Your Business Dunnington Consulting www.consultdunnington.com 802 863-4694
- 2. Potentials How do great owners make their businesses worth more ? 1) 95 % of owners overestimate their company’s worth – it’s normal - so those in the know increase operational strength to grow and optimize value, well before transition. 2) Our customers typically discover a 15-45% value gap between current and potential enterprise value, relative to competitors. Our assessment happens in minutes, not months. 3) We rank key improvements by ROI, thus impact on valuation – which drives out very clear priorities. Many clients can achieve a 20 % + annual gain in operational value. 4) Absent this kind of insight and effort, the track record is poor – 80% of businesses aren’t sold and just shut their doors.
- 3. The financials are a starting point, but …
- 4. Profits are today’s good news from yesterday’s efforts – and while they fund the future, they don’t predict it. Discovering the Path to Value If you can’t show a credible, systematic method to generate profits going forward - the capacity to produce value - your company is tough to sell. Just ask a prospective investor, banker or buyer. The key is to assess, plan and build operational value.
- 5. But How? Is This Familiar ….. T ____ F____ We need to go faster. Be more innovative. Make better decisions. Break down silos. Capture more / better RFPs. Work horizontally. Simplify our structure. Focus on the customer. Scale without losing what makes us great. Be more agile. Change our business model. Upgrade technology. Share information. Prepare for volume changes. Attract different talent. Retain the great talent we have. T____ F ____ Too busy to improve
- 6. Some Days ….. “I’m not confident I could let go and leave this in other peoples’ hands ……even for a short getaway.”
- 7. What are the right things to do? Which first? Which will add the greatest value? How do you know?
- 8. Got the right keys to unlock that value?
- 9. How Close Are You to Your Intended Transition ?
- 10. Some Bracing Facts • Only 2 out of every 10 businesses that come to market actually sell. • Only 30% of family businesses successfully transition to the second generation, only 12% transfer to the third, and the success rates diminish from there. • Of those that succeed in the sale of their business, 75% experience “profound regret” within one year of exiting their business. * Source: Exit Planning Institute
- 11. Take the Time and Steps to Succeed Assess Prepare Transition Business Valuation Personal Financial Assessment Goals Values Options Value Building / Acceleration Plan Org & People Preparation Personal Financial Arrangements Hold Pass it on Sell Close Options
- 12. Imagine if you systematically raised your business’ value in a deliberate, ongoing way. You’d enjoy financial freedom and time freedom because of: Customer confidence - they keep buying Employee confidence - they keep applying and working Investors call you back – and keep investing When you finally approach transition, the business has all the value from your life work that you’re counting on. Thought Starter
- 13. Dunnington Consulting offers value acceleration services for growth-stage, established and transitioning companies Bill Dunnington brings 25 years of consulting and operational experience - and a record of results scaling, renewing and transitioning businesses. Services offered a la carte or bundled: • Vital Signs is the assess, plan, build launch pad. • Future Fitness is the organization building process tos to install that raises that value sustainably. • Bigger Game is the way to raise your impact with with customers, competitors, colleagues, communities. • We’re keen to do what best serves you: give you the analysis and get out of your way, supply an arms-length DIY kit, provide coaching support, point services or in-depth, roll up-the-sleeves full program management support.
- 14. Core Value Software – the market leader in value growth software with done for you analytics - patented tool and methodology developed at MIT, - tool of choice for national valuation association (NACVA) - used by 6,300 companies worldwide - over $6 billion documented value gains, world-wide Enter your sales & profit data, company knowledge to: - Get a sector-based, operational valuation. - Learn what your enterprise could be worth. - See specific ROI for your company's top value gaps. - Identify potential red flags compromising value. Get results in minutes, not months, within +/- 10% Private, confidential and secure data Who is CoreValue?Vital Signs Starts with Core Value Software
- 15. Vital Signs Overview Unlock Executable Growth Plan Discover Free Initial Analysis Unlock Deep-Dive Analysis
- 16. Vital Signs Discovery Discover Free Initial Analysis Step 1: Starts With Discovery Report – in minutes You complete an 18 question online survey Based on your answers, you get an immediate report 1)A top level $ value: what is your business worth today? (+/- 10% of formal valuation) 2) Value gap vs competitors: what could your business be worth? 3) 2-4 highest ROI opportunities to improve. Free Fast Online Accurate Secure Sector- relevant
- 17. The Deep Dive Analysis Discover Free Initial Analysis Step 2: Deep-Dive Analysis is an in-depth view of potentials Unlock Deep-Dive Analysis Based on your answers, the 80 software algorithms analyze 18 Value Drivers, 9 external, 9 internal; 78 Driver Components, 144 Task Areas You get: 1)ROI-based ranking of the top value building opportunities 2)Results foot to industry benchmarks 3)Clearly apparent $ value of improvement by driver – clarity on what each would achieve The deep dive 2-3 hour survey can be done by individuals and /or teams
- 18. Deep Dive Assesses 18 Value Drivers External Internal Revenue Growth Addressable Market Size Market Share Recurring Revenue Barriers to Entry Product Differentiation Brand Customer Diversification Relative Margin Advantage Clear Company Overview Financials Customer Connections Sales and Marketing Operations Legal HR Senior Management Innovation
- 19. Value Building – Action Plan Unlock Executable Growth Plan Discover Free Initial Analysis Unlock Deep-Dive Analysis Step 3 : Master plan for the portfolio of value building tasks 1) Clear course of action for the leadership team to build value 2) Shows the $ value of each task in advance 3) Rankings reflect ease of implementation 4) Staged and sequenced tasks laid out in 6-12 week intervals syncs up with operational rhythms, helps manage cash, time and resources. 5) Drives value building priorities into goals, responsibilities, timing, tracking metrics. Actionable, data-based course of action to build value
- 20. Unlock Reports Become a Clear, Simple Value Building Management Tool •Baseline value gap analysis •Reflects sector and competitor context •Clear, ROI-based priorities •Red, yellow, green format •Includes ‘What If ?’ scenario simulation •Increase in value over time for completed tasks
- 21. Vital Signs Stirs the Pot in Constructive, Actionable Ways • You inform, focus and strengthen your business with very high speed to value. • Your people discover the really key vital signs. You get clarity and alignment on an ROI-based value improvement plan, and work with them to implement it. • Tangible progress creates momentum, the confidence born of success, and more capacity to grow and improve. • You sleep better. Worry less. Enjoy work more. Take vacation. Build the path to succession. Make the business fit for the future. Build a legacy you’re proud of. • Virtually all (90+%) owners rethink and adjust the business value trajectory and their personal financial plans.
- 22. “Using the CoreValue Vital Signs system has transformed my practice!”-Ed Wandtke, CPA, MBA, CVA“ “The owners were looking for $1.5 million at sale when we started. Within a year, they received an offer for $3.2 million.” “…showed us what to focus on to confidently achieve sustainability and scalability. Now, we’re not just a more profitable company, we’re a more valuable company.” - Chris Hovan & Damorow Jones Owners, Metals Your Way “We will definitely use this again in our next acquisition.” “Just go out and use it—it works.”
- 24. www.consultdunnington@gmail.com 802 863-4694 https://www.mycorevalue.com/discover/go/dunnington -consulting-web Would you like to be contacted to discuss the results? Yes _____ No thanks _____ Contact us for a strategy session: Get an idea of your company’s operational value Identify your company's growth opportunities. Identify your company's top value gaps. Identify potential red flags compromising value. Benchmark against your industry. Get a taste, free, 18 questions, and a report in minutes Click below: Get Started Now