Business Value-Adding Support
When selling, refinancing, or simply building long term value, immediate significant ongoing value improvements can be achieved through our process.
The following are some of the steps to realising immediate and full business value potential.
Immediate Value-Adding
Value Gap Analysis
A full independent and confidential valuation offers early protection against under-selling or discounting business value. It includes a Value Gap Analysis highlighting any negative factors uncovered early.
Early identification of factors downgrading business value must be avoided before discussions commence with other parties. If not adequately managed, such factors can lead to denigration of business value.
Our Value Gap Analysis anticipates buyer resistance in advance. Steps taken proactively to protect your value capture extra business value, strengthen the value proposition thereby eliminating price discounting pressures.
The following, are some of further steps to capture extra business capital value.
Packaging Your Proposition for Added Value
More than a standard IM (Information Memorandum).
More than before, investors buyers and lenders are risk sensitive. They are quick to discount value if in any doubt or if unclear over a proposition. Business owners are too close to their business to describe their business value proposition objectively, or to present it with clarity.
Your proposition is made BANKABLE, or 'aerodynamic' for easier lift-off, through correct positioning and professionally crafted packaging of your selling proposition.
A professional package of your proposition is the foundation for a forceful and effective communication with interested parties.
Packaging your proposition - makes it ‘bankable’. This is essential if best results are to be achieved.
Professional packaging of a business proposition:
- Clarifies your value proposition and positions it correctly for the best outcome;
- Provides buyers with an immediate appreciation of the value of your proposition;
- Avoids the usual ‘lost in translation’ problems when an investor in turn, seeks bank or lender approval for finance, or when a proposition is passed on for scrutiny by professional advisers;
- A carefully crafted Package, presenting a business case with clarity, consistency, and accuracy, eases natural and often hidden buyer or investor resistance.
A correctly packaged proposition will optimise value, expedite desired outcomes, define and strengthen the value proposition, and will make a proposition more bankable and more valuable.
Deal Structuring and Negotiating Support
More complex propositions require specialist structuring supported by negotiating expertise.
Often special needs of either or both parties need to be accommodated. Obstacles must be overcome, with skillful deal structuring ‘outside the square’ entrepreneurial solutions, if a proposition is to be successfully consummated.
Successful deal structuring calls for an understanding of added value. Where 1 + 1 = 3 or better. It often requires objective yet entrepreneurial thinking ‘outside the square’ to structure a deal, to capture value.
Taking the extra time can avoid costly stalling of deals. Getting it done, and getting it done right, from the start makes the difference.
Value-Adding Strategies
With the right strategies and related steps in place, you can start deriving immediate and ongoing growth in value and related benefits. Profitability and cash flow are enhanced at the same time, with value and performance being mutually supportive.
Profit Recalibration
Profit performance is a key quantitative measure of value as sustainable (net) income.
Unless your business profit engine is fully and correctly tuned, your business is likely to be wasting significant internal resources, with lost profits, cash and value. This waste is not normally transparent without our deliberate and systematic analysis of root profit drivers and their inter-relationship, including revenue streams, contribution margins and capacity, amongst other factors.
Recalibrating your business for extra profit puts your business on the right track, capturing ongoing profits and value. Our proven tools and processes will help turn the light on hidden profit leaks.
Make your business more robust, more profitable, and more valuable. Forget tinkering with expenses. Tune your business root profit drivers. Astounding results can be achieved through successful profit recalibration.
Structural Value Alignment
Alignment of the key elements of business value focused structure and positioning are essential to to successfully capturing business capital value.
They include such considerations as 'scalability' (can systems be readily replicated?), is there repeat business (same customers come back?) and other.
The right structure ensures your capital value-capturing engine is firing on all cylinders.
Investor or Buyer Risk Perspective
There are numerous qualitative considerations that affect value in the eyes of potential buyers. Although qualitative, they do nonetheless form an important and crucial part of the value formula risk-return (The Science behind Business Values)
Canvassing key business risks through our Value Gap Analysis will identify risks as perceived by buyers in advance.
Taking the necessary pre-emptive corrective measures will ameliorate buyers' perceived risk-return assessments, adding immediate value to your business. Positioning your business to be more valuable, bankable and salable.
Risk, growth, returns, effort, security, control, timing, proven team, client mix, business sea-worthiness... are but a few factors affecting investor perception of capital value.
Contact us for more information. Initial exploratory discussion is FREE