Leaving It To Chance?

Since a company owner never knows for sure what exit strategy may be successful, they should always consider decisions based on maximizing company value no matter what strategy is ultimately followed. Company owners should focus on the qualitative factors that drive quantitative results that align and strengthen the organization, improve profitability, enhance access to capital, reduce overall risk and maximize the value of the company.

We suggest identifying as many company specific risk areas as possible, assess them objectively, and link the assessments to the calculation of company value; the process maximizes the company value through risk reduction. The assessment framework of every company is composed of eight categories with many possible subcategories:

  • Planning: Target markets, product development, competition
  • Leadership: Corporate culture, leadership communication
  • Sales: Team, strategy, operations, projections, customer base
  • Marketing: Market branding, financial resources, sales strategy
  • Legal: Intellectual property, litigation, licenses, filings
  • People: Incentive programs, ability to scale, organizational structure
  • Operations: Supply chain, quality assurance, operating efficiency
  • Finance: Balance sheet, financial sustainability, internal controls
The primary benefit of the process is maximizing the value of the company; whether the company is sold, or not, depends upon the goals of the business owner.