Views & Analysis from our Experts

Value acceleration series: recap part one (of five)

We held our first discussion on value acceleration on January 9th as the first of a five-part series. If you were unable to attend (because the weather was not in your favor, or if you are outside of the Portland, Maine area), or are a business owner or executive interested in increasing the value of your business, read on to see what you missed.

One of the statistics that really caught participants’ attention was this one: 12 months after selling, three out of four business owners surveyed “profoundly regretted” their decision. Situations like these highlight the importance of the value acceleration process, which focuses on increasing value and aligning business, personal, and financial goals. Through this process, business owners will be better prepared for business transition, and therefore be significantly more satisfied with their decisions.

In our first session, we walked through a high-level overview of the value acceleration process. This process has three stages, diagrammed here:

© Exit Planning Institute

The Discover stage is also called the “triggering event.” This is where business owners take inventory of their situation, focusing on risk reduction and alignment of their business, personal, and financial goals. The information gleaned in this stage is then compiled into a prioritized action plan utilized in future stages.

In the Prepare stage, business owners follow through on business improvement and personal/financial planning action items formed in the discover stage. Examples of action items include the following:

Addressing weakness identified in the Discover stage, in the business or in personal financial planning
Protecting value through planning documents and making sure appropriate insurance is in place
Analyzing and prioritizing projects to improve the value of the business, as identified in Discover stage
Developing strategies to increase liquidity and retirement savings

The last stage in the process is the Decide stage. At this point, business owners choose between continuing to drive additional value into the business or to sell it.

Through the value acceleration process, we help business owners build value into their businesses and liquidity into their lives.

Our next discussion in the Value Acceleration presentation series, will be on Wednesday, February 13 at 8:00 am in our Portland office. This conversation will focus on the Discover stage of the value acceleration process, including a business valuation overview and preparing one’s personal financial statement and goals. If you missed the first conversation, we would love to see you there. We will provide a brief recap to get you up to speed, then launch into our conversation. Please contact me or register here if you would like to attend. 

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