In a discussion with an executive last week who is doing some work with a large private equity firm on one of their recent acquisitions, he asked a question I thought might be of interest. His question was, in maximizing the valuation of a company, is there any difference if you are planning on an IPO vs Read more…

We just read another survey, this one from BEI, that said 75% of business owners said they were ready to exit if the right circumstances presented themselves. And of that same group, 26% believed that they would not have any problems exiting their businesses successfully. The reality according to experts and a number of other surveys we Read more…

Part 4 – Overcoming Barriers to Growth to Improve Business Valuation Maximizing the business valuation involves improving the management team performance when it comes to planning and executing the strategic plan.  The valuation of the business by buyers and investors such as private equity depends on how well the president or CEO has addressed the issues such Read more…

Part 3 – Overcoming Barriers to Growth and Improving Business Valuations Management team effectiveness is a very large part of the assessment of business valuation by business buyers and investors such as private equity firms. Critical areas that teams typically address to reduce dysfunction include: Communications Understanding how each member communicates and then how to effectively communicate Read more…

Part 2 – Overcoming Barriers to Growth and Improving Business Valuations Having a track record of developing and implementing a strategic plan is critical to business buyers and investors such as private equity firms. It has a positive effect on business valuations when the track record can translate into predictability of future performance. An  alignment  driven strategic Read more…

Buyers and investors in companies are buying or investing in the potential for future growth, not only in sales, but more importantly, growth in earnings, or more precisely EBITDA. They assess the organization for predictability of future earnings as part of their business valuation. Ensuring the future becomes reality results not only from keen insight and excellence Read more…

One of the value drivers that contributes significantly to the valuation of a company is the effectiveness of the management team. The New Growth Strategies SM process (Figure 3)  was developed by Avantt Consulting, now Avantt Partners, to drive the paradigm shift and concomitant behavioral changes in management teams needed to implement these new goals.  While there Read more…

Improving the valuation of a company will clearly imply changes need to be made to the ways in which the management team functions. The implications are clear:  the growth strategies that are inhibited by the corporate dysfunctions require courage to come against the inertia, politics and fear in management teams to address the dysfunctional behaviors.  What is Read more…

One of the major drivers of business valuations is the assessment of the growth potential of the firm. The effectiveness of the management team, and therefore the dysfunctional issues of the management team has a significant impact on the business valuation. Much of the business press has traditionally talked to the issue of looking beyond downsizing, TQM, Read more…