How Ordinary Companies CreateExtraordinary ValuePresented ByJoel Stromwww.cksadvisors.com      6263 N Scottsdale Rd480-451...
Larry
Larry made itnot justaboutEBITDA!
Larry Moved hisCompany from:A nice to havetoA got to have!
Larry did it byaccelerating hiscompany’sStrategic Value
Larry waited to do itpre-saleIt worked …but whatdid it cost him?
The key toincreased companyvalue is to makeyour company standout
To make it aGot to Have
The rule of thumb fordetermining companymarket value is usinga multiple of earnings
A “Got to Have”company movesmarket value beyondthe “rule of thumb”
Creating a “Got toHave” comes fromcreating StrategicValue
Strategic Value doesmore than simplymove the multiple
Strategic ValueImproves operatingresults and EBITDAIt makes you more $
Strategic Valueprovides owner/managementoptions
Strategic Valueprovidesinvestmentinsurance
No matter where you are  in your business or  personal like cycle…It is always the right time to be     Building Strategic...
Factors of Strategic Value       Finance       Strategy      Operations      The Market
For Each Strategic ValueFactor there is aCore Focus and there areStrategic ValueComponents – SVC’s
FinanceCore Focus –    Create consistently    improving performance
Select Finance SVC’s     Real/attestable financial statements     No co-mingling     Appropriate outside service providers
StrategyCore Focus –     Identify and strengthen a     uniqueness in products, markets,     geography, processes, business...
Select Strategy SVC’s     Strong "owned" brand and niche     Innovation – Evolution     “You own it”     Scalability     C...
OperationsCore Focus –    Create a stainable high    performance organization    and operation
Select Operations SVC’s    “Real" company practices     Management team     Outside advice     Owner’s role and importance...
The MarketCore Focus –    Create a position of    industry/ niche    leadership and visibility
Select “The Market” SVC’s    Awareness and    visibility    Positioning    Controlling the process
How can you make ithappen?Follow this 5 step process
Step #1Unbiased assessment of the company’scurrent SV situation-Rule #1 - Don’t kid yourself
Step #2Determine goals – set atarget
Step #3Develop Strategic ValueAcceleration Roadmap to reachtarget
Step #4Create, implement, andmonitor the Roadmap
Step #5Continually monitor theindustry and “The Market”
The SV Roadmapimplementation processmust become one of theowner’s primaryresponsibilities
Common Advice:Manage thebusiness everydaylike its for sale
My Advice:Manage thebusiness everydayto make itA Got to Have
Common Statistic:80% of Businessesare not ready forsale
Un-Common Statistic:Think how few areGot to Haves
Questions                 Copy of the Presentation                 Joel Strom                 jstrom@cksadvisors.com      ...
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How Ordinary Companies Create Extraordinary Value

  1. 1. How Ordinary Companies CreateExtraordinary ValuePresented ByJoel Stromwww.cksadvisors.com 6263 N Scottsdale Rd480-451-1223 Suite 390 Scottsdale, AZ 85254
  2. 2. Larry
  3. 3. Larry made itnot justaboutEBITDA!
  4. 4. Larry Moved hisCompany from:A nice to havetoA got to have!
  5. 5. Larry did it byaccelerating hiscompany’sStrategic Value
  6. 6. Larry waited to do itpre-saleIt worked …but whatdid it cost him?
  7. 7. The key toincreased companyvalue is to makeyour company standout
  8. 8. To make it aGot to Have
  9. 9. The rule of thumb fordetermining companymarket value is usinga multiple of earnings
  10. 10. A “Got to Have”company movesmarket value beyondthe “rule of thumb”
  11. 11. Creating a “Got toHave” comes fromcreating StrategicValue
  12. 12. Strategic Value doesmore than simplymove the multiple
  13. 13. Strategic ValueImproves operatingresults and EBITDAIt makes you more $
  14. 14. Strategic Valueprovides owner/managementoptions
  15. 15. Strategic Valueprovidesinvestmentinsurance
  16. 16. No matter where you are in your business or personal like cycle…It is always the right time to be Building Strategic Value
  17. 17. Factors of Strategic Value Finance Strategy Operations The Market
  18. 18. For Each Strategic ValueFactor there is aCore Focus and there areStrategic ValueComponents – SVC’s
  19. 19. FinanceCore Focus – Create consistently improving performance
  20. 20. Select Finance SVC’s Real/attestable financial statements No co-mingling Appropriate outside service providers
  21. 21. StrategyCore Focus – Identify and strengthen a uniqueness in products, markets, geography, processes, business model
  22. 22. Select Strategy SVC’s Strong "owned" brand and niche Innovation – Evolution “You own it” Scalability Contracts/recurring revenue Diversification
  23. 23. OperationsCore Focus – Create a stainable high performance organization and operation
  24. 24. Select Operations SVC’s “Real" company practices Management team Outside advice Owner’s role and importance to continued success
  25. 25. The MarketCore Focus – Create a position of industry/ niche leadership and visibility
  26. 26. Select “The Market” SVC’s Awareness and visibility Positioning Controlling the process
  27. 27. How can you make ithappen?Follow this 5 step process
  28. 28. Step #1Unbiased assessment of the company’scurrent SV situation-Rule #1 - Don’t kid yourself
  29. 29. Step #2Determine goals – set atarget
  30. 30. Step #3Develop Strategic ValueAcceleration Roadmap to reachtarget
  31. 31. Step #4Create, implement, andmonitor the Roadmap
  32. 32. Step #5Continually monitor theindustry and “The Market”
  33. 33. The SV Roadmapimplementation processmust become one of theowner’s primaryresponsibilities
  34. 34. Common Advice:Manage thebusiness everydaylike its for sale
  35. 35. My Advice:Manage thebusiness everydayto make itA Got to Have
  36. 36. Common Statistic:80% of Businessesare not ready forsale
  37. 37. Un-Common Statistic:Think how few areGot to Haves
  38. 38. Questions Copy of the Presentation Joel Strom jstrom@cksadvisors.com Direct line 480-745-3088 www.cksadvisors.comCKS Advisors LLC6263 Scottsdale Rd Suite 390Scottsdale AZ 85250
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