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)
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
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 »Middle Market M&A-A Summary of 2020 and Outlook for 2021
As 2020 winds down, it’s a great time to start planning ahead for 2021. In our earlier articles, we spoke about why value creation was a worthwhile goal for entrepreneurs. In short, a value creation mindset can i) increase an owner’s options when it comes… Read More »What are the Five Things You Should do Next Year to Improve Value
Key Takeaways Capital allocation decisions involve funding business operations either through debt or equity (or some hybrid of these two). Capital allocation decisions are made to maximize return on equity (related to equity value) while value creation activities are performed to maximize return on invested… Read More »A Holistic Approach to Owner Management Part III: Equity Value
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
Overview Many small and medium-sized business owners start off with two objectives in mind: pay themselves a reasonable wage and minimize taxes. This approach is suitable to a person who is more of a “lifestyle” owner, however, as the business grows a greater focus is… Read More »Value Acceleration and the SMB