More than just business jargon, corporate performance systems are tools that seek to enhance the long term value of a company. Companies both large and small can benefit from having strong corporate governance systems in place to not only increase performance, but also to be used as an effective tool to drive value in an acquisition.
Over the past few years I have met with a lot of business owners who were very confident in the financial performance of their companies, only to eventually realize that there were many gaps. Typically, facing a cash crunch, going through a major restructuring or growth that was proving more difficult to handle than planned (or not planned adequately).
Surprisingly many of these owners ended up spending a lot of time and money to address their concerns with very little results.
The only true measure of the value of your business is what a third party buyer will pay you for it.
How will you determine the value of the business?
Books, articles, presentations, courses and careers have been based on devising ways to determine the value of a business. There are many well trained professionals available to review, analyze and dissect your business, evaluate the marketplace and give you a dollar figure on what they think the business is worth. In cases where there are shareholder disputes, marital conflict at the owner level, or for estate purposes, these valuations will be extremely useful.
An important measure for you as the owner is whether you have done everything you could have done to improve the value to a prospective buyer. Long before a prospective buyer approaches you, you should have the answers to the following questions. If you can’t answer them you are probably not going to get the price you expect.
For the past 5 years, through our Chairman’s View program, Welch has specialized in helping owners of privately-held companies maximize the value of their business. Whether it be new levels of growth, aligning and assessing team members, business transitions (next generation, management buyouts, etc.), proper delegation and more.
The companies we worked with appreciated the guidance but we recognized that a lot of owners wanted to do it themselves – understand their value, track their performance, prepare for an upcoming due diligence, etc. That is why we are so excited to announce the launch of CoreValue an interactive software that shows you what you’re worth, where to grow and how to convert this growth into wealth.
As always, we are here to support. Find out more about CoreValue Software.