Introduction One of the themes I have been trying to drive home in many of my articles is that a key component of value acceleration involves growing both the absolute amount of cash flow in your business as well as its sustainable growth rate. This… Read More »Size Does Matter
Introduction There are two main types of value-killers that can impact both the sale and valuation of a business: lack of separation of owner from the business; and extreme customer concentration. In this article, we will examine why both of these situations create critical problems… Read More »The Two Big Value Killers (And How to Address Them)
Introduction There are three gaps that SME owners have to consider: the wealth gap; the income gap; and the value gap. In this article, we will take a look at why managing and eliminating such gaps is important to business owners on their road to… Read More »Mind the Gap
Overview In this article, we explored the reasons why an SME owner should start performing financial forecasts that specifically target discretionary cash flow. However, a few questions remain. What time frame should a forecast encompass? How often should forecasts be updated? In this article, we… Read More »Roll Up Your Forecast to Win
Objectives Why is it important for an SME owner to get a grip on their cash flows through forecasting? What are the common definitions of cash flow? What is forecasting and how can it help an SME owner? Why Get A Grip on Cash Flows?… Read More »Get a Grip on Your Cash Flows
In early January, the American Mergers & Acquisitions Association (“AM&AA”) issued the M&A Access 2021 Q1 Report. The AM&AA is an organization that focuses on the Middle Market. I’ve summarize the key findings below and provided my overall final thoughts at the end. Overview While… Read More »Grow Your Business With an Exit In Mind
Key Takeaways As part of a value creation mindset, SME owners should concentrate on activities that increase enterprise value. Such activities can either focus on providing or supporting sustainable growth or de-risking the company’s cash flows. Attempting to make giant improvements all at once will… Read More »A Holistic Approach to Owner Management Part II: Enterprise Value
Key Takeaways SME owners should understand the difference between Enterprise Value, Equity Value, and Net Proceeds because each metric has a different meaning and importance. When undertaking a value creation mindset, owners should focus on managing their businesses’ enterprise value and equity value. Understanding these… Read More »A Holistic Approach to Owner Management Part I
Key Takeaways · For many business owners, personal and business wealth are tightly correlated. · Business owners should devise a plan (and execute upon it) for each of the five stages of Value Maturity to maximize their personal and business wealth. · To optimize results,… Read More »The Five Stages of Value Maturity
Key Takeaways Value creation requires a paradigm shift for many owners in how they manage their companies. A value creation mindset can appeal to both growth-oriented and exit-oriented owners. A value creation mindset can inspire owner-managers to take their businesses in directions… Read More »Value Creation: A Paradigm Shift