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The 5 Stages of Value Maturity Podcast Series: Stage 1 – Identify Value

In this five-part podcast series, we will be hosting exit planning expert Mike Trabert to discuss the five stages of a value maturity cycle that will help position your business for a successful transition. A partner at Skoda Minotti, Mike leads the firm’s Value Acceleration & Exit Planning and Transaction Advisory Services groups. He is a certified valuation analyst and the author of new e-book The 5 Stages of Value Maturity.

Over the next several months, we will cover each of these five stages in a value maturity cycle:

1. Identify Value

2. Protect Value

3. Build Value

4. Harvest Value

5. Manage Value

For part one of our podcast series, we are diving into the first stage of value maturity – identifying the value of your company.

Although many small-business owners pour their blood, sweat and tears into building a company from the ground up, few make exit planning an integral part of their day-to-day business operations. As a result, there is often a sharp disconnect between the perceived and actual value of a company. In fact, 56% of business owners believe they know the value of their company, but only 18% have had a professional valuation in the last two years. Considering the vast majority of a business owner’s net worth is tied up in his or her company, this can have a devastating impact when it comes time for a transition.

In order to identify your company’s value, you’ll need to view it from the buyer’s perspective instead. For instance, how does your company score in terms of business attractiveness and transition readiness? This can be based on a variety of factors, including the management team, established systems, growth strategy and associated risks. By getting an accurate gauge on value, business owners will be better equipped to make informed decisions that will prepare the company for its next growth chapter – ultimately leading to a more successful transition for all involved.

To learn more, listen to this week’s podcast with exit planning expert Mike Trabert!

 

Posted by: Jeffrey Kadlic A co-founder and managing partner at Evolution, Jeffrey has spent the past 15 years as an investor and private equity professional with a true passion for working with dynamic small businesses. @kadlic

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