Value Opportunity Profile
A Value Opportunity Assessment will identify, prioritize, and implement initiatives that can increase business value by 80% to 100%.
By being proactive with a road-mapping process, business owners have better opportunities for long-term sustainable, profitable, growth, through more manageable methods, with greater margins, reduced cost of capital, and greater appeal to outside investors. By beginning this process 1-5 years before a contemplated sale of the business, an owner can realize increased profits along the way and an enormously larger valuation on closing day when they do sell their business.
Our Process
We’ll facilitate an intensive full-day comprehensive assessment with your executive team flushing out the maturity of your organization in all key organization competency areas: Planning, Leadership, People, Sales, Marketing, Operations, Finance, and Legal. Across these competency areas, we’ll cover 50 pivotal qualitative categories that are key to intrinsic value.
We’ll then couple the results of that day with your financial performance to deliver an exhaustive analysis of the qualitative drivers behind the value of your company. We’ll also deliver a proposed road map with the initiatives that will have the largest impact on enhancing your value going forward and a future market value you can likely achieve.
Many companies find they have the ability to increase business value by 80% to 100% in the next one to three years.
Our Guarantee
We are so confident that our process will add saliently more value than what you’ll pay for it, that if you don’t agree, and will take the time to explain why you didn’t realize the appropriate value, you won’t need to make your final payment.
Private Company Value Gap
Sadly, most private business owners never come close to maximizing the value of their businesses. This is often because they aren’t aware of the many factors that drive business value in the eyes of potential investors or acquirers.
Recently, several renowned experts conducted research that examined the differences in business values between public and private companies. They concluded that, on average a public company with no debt might be worth five times the value of a “comparable” private company.
At Emerge Dynamics, we recognize why and we know how to help you reduce the gap.
Public Company Discipline
When companies prepare to go public, they are guided toward many fine-tuning changes to maximize their value upon entering the public markets. Some of the changes are mandated by laws and regulations, while others are purely part of market expectations. All of the improvements, however, are designed to minimize the risks of investing in that company which, in turn, maximize value.
Business owners shouldn’t have to go public in order to get the guidance they need to maximize their business value. They should have a dedicated resource available to them, as private companies, so that no matter what corporate transactions they decide to pursue or when they decide to pursue them, they can do so from a position of maximum value and strength.
Emerge Dynamics’ mission is to be that resource.
Why Should Business Owners Care?
– During the next 20 years, as the baby boomer generation retires, private markets will be inundated with businesses for sale, leading to more supply than demand. As a result, valuations will suffer, and only the best-of-class companies will sell at any significant value.
– Research conducted by Pepperdine University indicates that in the lower-middle market there is a 40% failure rate on business owners trying to exit, and the majority of the 60% that succeed include seller concessions.
– The primary reason for such a high failure rate, or seller concession, is a gap in value expectations between the seller and the buyer. By being proactive with a road-mapping process, business owners have better opportunities for long-term sustainable, profitable growth through more manageable methods with greater margins, reduced costs of capital, and greater appeal to outside investors.