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How to Accelerate Your Company’s Strategic Value

How to Accelerate Your Company’s Strategic Value . And Why You Need to Do It Now!. Presented By Joel Strom IMC “High Cost of Doing Nothing” Event. Larry. 12 X EBITDA with an Extra Kicker !.

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How to Accelerate Your Company’s Strategic Value

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  1. How to AccelerateYour Company’s StrategicValue And Why You Need to Do It Now! Presented By Joel Strom IMC “High Cost of Doing Nothing” Event

  2. Larry

  3. 12 X EBITDA with an Extra Kicker ! Gift to Case School of Engineering designed to foster student innovation and experiential learning opportunities Largest-ever donation of nearly $6 million from alumni Larry and Sally Sears to transform electrical engineering education

  4. Larry made it not just about EBITDA!

  5. Larry Moved his Company from: A nice to have to A got to have!

  6. Larry did it by accelerating his company’s Strategic Value

  7. Larry waited to do it pre-sale It worked but what was his opportunity costs in the years prior to his awakening?

  8. Wherever you are in your business or personal life cycle - Planning a liquidity event in the next 12 months Or Planning to grow your business for the next 12 years Now is the time to Accelerate Your Strategic Value

  9. Strategic Value can affect the multiple Strategic Value can make it a “Got to Have”

  10. Strategic Value Improves operating results and EBITDA It makes you more $

  11. Strategic Value provides owner options

  12. Strategic Value provides investment insurance

  13. Focus on Accelerating STRATEGIC VALUE like your future depends on it –because it does

  14. Factors of Strategic Value Finance Strategy Operations The Market

  15. Finance Core Measure – Consistent and improving performance

  16. Strategy Core Measure – Strength and/or uniqueness in products, markets, geography, processes, business model

  17. Operations Core Measure – Sustainability

  18. The Market Core Measure – Positioning and visibility

  19. For Each Strategic Value Factor there are specific Strategic Value Components – SVC’s

  20. Finance SVC’s • Sales/profit/Margin/EBITDA • Growth and consistency • Trailing and projected trends

  21. Finance SVC’s Tracking and reporting Real financial statements No co-mingling Appropriate ERP system Audit or review statements

  22. Finance SVC’s Controls and measures Metrics established Monitoring systems in place “Take action” processes

  23. Finance SVC’s Resources Appropriate financial personnel and management Relationships with appropriate outside service providers Attorney(s) CPA Bank Attorney(s)

  24. Strategy SVC’s Brand Strong "owned" niche Market perception and recognition Strong value proposition Customer driven differentiators Level of innovation

  25. Strategy SVC’s “You own it” Intellectual Property Product Operational processes Exclusivities/contracts Strategic advantages/differentiators

  26. Strategy SVC’s Products/services/customers Longevity of product Future potential/backlog Scalability Customer concentration or diversification Defined business growth and product roadmaps

  27. Operations SVC’s “Real" company practices Strength/utilization of competencies Common and shared vision Risk management process Utilizing operational metrics Operational monitoring processes

  28. Operations SVC’s Management Appropriate management team Effective team and culture Management succession plan Trucks away from disaster Effective BD and sales processes Outside professional services/ advisory board

  29. Operations SVC’s Ownership Owner's role Importance for future success Ability to operate without

  30. The Market SVC’s Awareness Market input Positioning Visibility Balance

  31. Step #1 Unbiased assessment of the company’s current SVC situation- Rule #1 - Don’t kid yourself

  32. Step #2 Strategic Value Acceleration Roadmap Overall goals/vision Prioritize SVC’s Establish acceleration metrics Create implementation process Measure results Monitor the market

  33. The SV Roadmap implementation process must become one of the owner’s primary responsibilities

  34. Common Advice: Manage the business everyday like its for sale

  35. My Advice: Manage the business everyday to make it A Got to Have

  36. Common Statistic: 80% of Businesses are not ready for sale

  37. Un-Common Statistic: Think how few are Got to Haves

  38. Accelerate your Strategic Value and Make Your business a Got to Have Make more money now Create options for your future Protect your investment Make it about more than just EBITDA

  39. How to AccelerateYour Company’s StrategicValue And Why You Need to Do It Now! Presented By Joel Strom www.cksadvisors.com 480-451-1223 6263 N Scottsdale Rd Suite 390 Scottsdale, AZ 85254

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