how ordinary companies create extraordinary value
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How Ordinary Companies Create Extraordinary Value
Presented ByJoel Strom
www.cksadvisors.com480-451-1223
6263 N Scottsdale Rd Suite 390Scottsdale, AZ 85254
Larry
Larry made it not just about EBITDA!
Larry Moved his Company from: A nice to have to A got to have!
Larry did it by accelerating his company’s Strategic Value
Larry waited to do it pre-sale It worked …but what did it cost him?
The key to increased company value is to make your company stand out
To make it aGot to Have
The rule of thumb for determining company market value is using a multiple of earnings
A “Got to Have” company moves market value beyond the “rule of thumb”
Creating a “Got to Have” comes from creating Strategic Value
Strategic Value does more than simplymove the multiple
Strategic ValueImproves operating results and EBITDAIt makes you more $
Strategic Value provides owner/ management options
Strategic Value provides investment insurance
No matter where you are in your business or personal like cycle…
It is always the right time to be Building Strategic Value
Factors of Strategic Value Finance Strategy Operations
The Market
For Each Strategic Value Factor there is aCore Focus and there are Strategic Value Components – SVC’s
FinanceCore Focus – Create consistently improving performance
Select Finance SVC’s
Real/attestable financial statements No co-mingling
Appropriate outside service providers
StrategyCore Focus – Identify and strengthen a uniqueness in products, markets, geography, processes, business model
Select Strategy SVC’s Strong "owned" brand and niche Innovation – Evolution
“You own it”Scalability
Contracts/recurring revenueDiversification
OperationsCore Focus – Create a stainable high performance organization and
operation
Select Operations SVC’s
“Real" company practicesManagement teamOutside adviceOwner’s role and importance to continued success
The MarketCore Focus – Create a position of
industry/ niche leadership and visibility
Select “The Market” SVC’s
Awareness and visibility Positioning Controlling the process
How can you make it happen?Follow this 5 step process
Step #1Unbiased assessment of the company’s current SV situation-
Rule #1 - Don’t kid yourself
Step #2Determine goals – set a target
Step #3Develop Strategic Value Acceleration Roadmap to reach target
Step #4Create, implement, and monitor the Roadmap
Step #5Continually monitor the industry and “The Market”
The SV Roadmap implementation process must become one of the owner’s primary responsibilities
Common Advice:Manage the business everyday like its for sale
My Advice:Manage the business everyday to make itA Got to Have
Common Statistic:80% of Businesses are not ready for sale
Un-Common Statistic:Think how few are Got to Haves
Questions Copy of the Presentation
Joel [email protected] line 480-745-3088 www.cksadvisors.com
CKS Advisors LLC6263 Scottsdale Rd Suite 390Scottsdale AZ 85250