First and foremost we are business people. We know and understand how to run and develop a business.
We have devised an evaluation and action process that is easy to understand and will lead to a clear plan of how to increase the value of your business.
The first step is to value your business now. This acts as a benchmark and helps quantify the increase in future value. Addressing the issue of increased capital value is not only motivating, it also provides a genuine opportunity to make significant improvements to the business.
In many cases, an indication of the value of your business is based upon a multiple of maintainable EBIT (earnings before interest and tax, depreciation and amortisation).
For privately-owned businesses the multiple will depend on a number of factors including:
- the industry sector
- where the business is in its life cycle (developing, mature, decline)
- dependency on any particular individual or customer
- and the quality of the management team
Once an indication of the value has been established we then explore the areas which need to be improved and address these with you in a series of workshops. This information is then converted into an action plan with deadlines and responsibilities.
It should be stressed that the amount your business is ultimately sold for may differ from this calculation as there are many other factors to consider when selling your business.