Build to Sell at a Premium Market Valuation

V&R Value Growth Roapmap

To start, we need to understand your ultimate objectives.

  • Set Your Target Sale Price (Enterprise Value)

    We will work together to set a realistic target sale price for your business, balancing your personal satisfaction with what the market is likely to offer.

  • Define Your Personal Priorities

    This includes understanding your lifestyle needs, expected cash flow post-sale, and how the sale aligns with your identity as a business owner. What does life after the sale look like for you?

We establish a clear picture of where your business stands today.

  • Conduct a Baseline Valuation

    We will conduct a detailed valuation of your business to understand its current value.

  • Build Your Company Profile

    Using our comprehensive onboarding process, we will gather essential data to deeply understand your business.

We research the market, identify the best investors or buyers for your business, and understand their perspectives.

  • Define the Buyer Universe & Recent Transactions

    We will research what groups are buying businesses like yours, looking at average valuation multiples and deal structures to guide our strategy.

  • Understand Buyer Requirements

    What do potential buyers need? We will look at factors such as revenue, EBITDA, management strength, operational stability, geographic footprint, and assets that attract premium offers.

  • Create the Ideal Seller Persona

    We will construct a clear profile of the type of company in your industry that will command a premium valuation in the market.

With a clear picture of where you are and where you want to be, we will evaluate what’s missing.

  • Gap Analysis Based on the “6 Ps” Framework and Financials

    We will measure your business against the profile of the “ideal company” that trades at a premium valuation.

Once our analysis is complete, we will create a clear roadmap to grow your business’s value.

  • Create a Detailed Growth Plan

    This plan will include all value growth activities, with clear milestones to measure progress and ensure we stay on track. We will "stress test" your growth strategy through a proprietary review process.

  • Align on Transition Metrics

    We will agree on the key milestones that signal it’s time to transition from value growth to the marketing phase when your business officially hits the market.

Once your business is positioned to achieve its target value, we will seamlessly transition into V&R’s sell-side process, taking it to market and engaging with the right investors or buyers to achieve your goals.

FAQs

  • The Value Growth process is a strategic framework designed to help business owners maximize their company's value before going to market. It involves a multi-step process that begins with understanding your personal goals for the sale, then moves to assessing your business's current value and identifying potential buyers. A key component is the gap analysis, where we compare your business to "ideal" companies in your industry that command premium valuations. This helps pinpoint areas for improvement, allowing us to develop a customized growth plan to enhance your business's attractiveness to potential buyers.

  • Setting a realistic target sale price requires a balanced approach. We consider your desired outcome and personal financial goals while also analyzing market conditions, recent transactions in your industry, and the overall attractiveness of your business to potential buyers. By combining your aspirations with data-driven insights, we establish an achievable target that satisfies both your personal and financial objectives.

  • The "Ideal Seller Persona" is a profile of the most attractive companies to buyers in your industry. It outlines characteristics such as strong financials, efficient operations, proven management teams, and unique product offerings. By understanding what buyers seek, we can benchmark your business against this ideal persona and identify key areas for improvement, ultimately making your company more desirable and maximizing its value.

  • The "6 Ps" framework is a comprehensive tool used to assess your business's strengths and weaknesses across six crucial areas: People, Product, Process, Proprietary, Patrons, and Profits. By evaluating each "P" against the "Ideal Seller Persona," we identify gaps that need to be addressed to increase your business's value. This framework provides a structured approach to analyzing your company's performance and pinpointing specific growth opportunities.

  • The Implementation Plan is a detailed roadmap outlining the specific actions needed to bridge the gaps identified in the analysis phase and enhance your business's value. It includes a timeline, milestones, and key performance indicators (KPIs) to track progress and ensure accountability. This plan acts as a strategic guide for implementing changes and improvements, ultimately positioning your company to achieve your target sale price.

  • The timeframe for implementing the Value Growth process depends on the complexity of your business and the scope of improvements needed. We work collaboratively to establish a realistic timeline based on your specific situation. The transition to the marketing phase occurs when your business has successfully addressed the identified gaps and is positioned to achieve its target value.

  • Throughout the implementation phase, you will receive ongoing support and guidance from our team of experienced advisors. We will assist you in developing and executing the growth plan, monitor progress against milestones, and provide expert advice on navigating challenges and capitalizing on opportunities. Our goal is to ensure your business achieves its full potential before going to market.

  • Once your business is strategically positioned and ready for sale, we seamlessly transition into our proven sell-side process. This involves marketing your company to a targeted network of potential buyers, managing negotiations, and facilitating a smooth transaction that meets your objectives. The Value Growth process ensures your business is optimally prepared to attract the right buyers and achieve a successful exit.