Planning for the End Game – Enterprise Valuation

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Planning for the End Game – Enterprise Valuation 2016-10-24T15:08:57+00:00

Enterprise Valuation is a critical component when a business owner is planning for the end game. Over the past 20 years in the software business, we have seen many companies acquired, participated in the sale of several and, through past leadership positions participated in buying and integrating nearly a dozen businesses. Those experiences have highlighted that it is much more than EBITDA and a few financial ratios that maximize enterprise value.

In the white paper, we explore the five most powerful levers for maximizing your company’s valuation. And, even if you’re not focused on selling, it turns out that these levers will help you more profitably and predictably grow your business.

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Business Valuation Whitepaper: Planning for the End Game

Feel free to browse our site for more information about Strategic Business Growth Planning.

To learn more about our Planning for the End Game Enterprise Valuation White Paper, we are happy to provide an excerpt here:

There’s the annual budget, not really a plan, but more of a spreadsheet. It shows the P&L from last year, some agreed upon growth projections, and the budgets the business should run against. It’s not a plan. It doesn’t have the actions, the prioritized initiatives, the offers, etc needed to be successful. For many, it is, however, the plan. Other companies have plans like “ideas.” These are things the owners plan to accomplish over the long term. Some are even documented, and reviewed several times a year for progress. Others have initiatives – major strategic things the company is doing to move the needle forward.

You probably know that the “swing” in value for a sellable business can range from 3 to 10 times EBITDA. Do you know all the factors that drive higher multiples? What gaps do you need to fill, and how can you get there without sacrificing your lifestyle and risking the current base?

In our view, businesses that are serious about long term value need a different kind of plan than the typical list or initiatives or P&L-based plan. You need a Strategic Growth Plan.

A Strategic Growth Plan reaches beyond normal year-over-year growth objectives and initiatives to:
» Grow beyond market growth rates, taking share from weaker competitors
» Build specific targeted enterprise value through increasing performance against the key levers that contribute to strong enterprise value.

Over the past 20 years in the software business, we have seen many companies acquired, participated in the sale of several and, through past leadership positions, participated in buying and integrating nearly a dozen businesses. Those experiences have highlighted that it is much more than EBITDA and a few financial ratios that maximize enterprise value. Let’s look at the key levers to maximizing enterprise value.”

5 levers for enterprise valuation