Is Value-Based Management a Good Choice for Your Business?

Maximizing the value of your business is the focus of a good exit strategy. It logically follows that a focus on value optimization should be built into your overall business strategy and how you run your business. Leading management consulting firm, McKinsey & Company, has developed a model for a comprehensive approach to value-based management (VBM). They assert …

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Value Drivers Are Key to a Successful Exit – Wrapping Up the Top Ten

After completing assessments and documentation, choosing her exit date, and working with me to develop an exit strategy, one of my clients is now in the process of executing that strategy. Her primary focus at this stage is on evaluating and optimizing the performance of the value drivers that impact her business. Enhancing performance in …

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Assessing Value Drivers for a Successful Exit

My recent blog, Prioritizing Value Drivers in Your Exit Strategy, reviewed the general process of developing an exit plan and beginning to execute that strategy. The process involves optimizing your company’s value drivers – business systems that generate either recurring revenue or financial efficiencies from an established, growing customer base and those internally controlled activities, …

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Prioritizing Value Drivers in Your Exit Strategy

One of my clients wants to sell her business and retire in 10 years. She completed our online Owner Planning Checklist which got her thinking about next steps. Since then, she has chosen her exit date, thinks she’d like to sell to an outside, third party, and has documented foundational information about her company and …

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Ownership Thinking

The term “Ownership Thinking” (OT) is likely best known as the title of a book. But it’s also a business, and a mindset. The Denver area business came first, founded by Brad Hams in 1995 after several years of developing the Ownership Thinking model. Its goal was to help businesses unleash their potential by providing …

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Which Value Drivers Need Attention First?

Once you’ve chosen an exit date, your attention should turn to value drivers – those activities, capabilities, or qualities that add worth to your company and that are under your control. Adding worth includes increasing profitability, reducing risk, and promoting growth consistent with your strategic goals. Optimizing performance in key areas of your business will …

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I’ve Chosen My Exit Date! Now What?

All business owners know they will eventually exit their business, and most understand that making it happen on their terms is a process that typically takes years. Yet, as is the case with any complex project, sometimes the hardest thing to do is start. Yet, starting is as simple as choosing your exit date! I …

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What is the Purpose of a Quality of Earnings Report?

If your exit plan includes selling your business, you can likely expect the potential buyer to request a Quality of Earnings Report. Obtaining a Quality of Earnings Report (QER) is one of the major steps in due diligence that a prospective buyer will perform to determine the quality of assets and identify financial shortcomings of …

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Is It Time to Consider Selling Your Business?

The sudden and unexpected economic impact of issues surrounding COVID-19 likely has business owners who were considering selling and exiting their business reconsidering their strategy. The influence of these external factors may not be something you’d factored in or for which you have a contingency plan. So now, when it is clear what elements may …

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Maintaining Business Value through Uncertain Times

With stock fluctuations, speculation and unknowns swirling around the coronavirus situation, business owners are focused first on ways to continue doing business. But especially for those who are planning to exit their businesses in the next few years, there is concern about maintaining the value of their business. First, some general advice…. Don’t panic – …

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