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The 5 Stages of Value Maturity Podcast Series: Stage 2 – Protect 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:

Once you have identified the value of your business, it’s time to move onto stage two of the value maturity cycle – protecting that value. Essentially, this will involve proactively addressing and minimizing existing risk-related issues, and mitigating potential risks for both the near and long term. This process can usually be carried out over a three-month timeframe.

As a business owner, there are three main types of risks to consider – otherwise known as the “three legs of a stool” – business, financial and personal. Ultimately, the goal is to systematically de-risk your business in each of these areas, which will enhance its attractiveness to potential buyers. After all, risk translates directly to value – meaning the riskier a business is, the less a potential buyer will want to pay. Conversely, a business with little to no perceived risk will command a higher premium.

Once these risk-related issues have been identified, business owners will need to consider what proactive steps can be taken to address and mitigate those risks – and how the management team will be involved in the process. Finally, it’s important to bring in an outside expert who can help guide the de-risking of your business.

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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