Jim Henderson, Shirlaws Building The Value In Your Business As we enter a period of recovery in the economy, a trend that is likely to last for the next 18 years, it’s time for business owners to shift their mind set from survival to growth. What does growth really mean, and how can you increase the value of your business in addition to increasing profit? The Business Journey aims to act as a free, non-executive board to owner-managed businesses operating in the West of Scotland SME community.

1. The Business Journey
Event No.6
26 August 2014
@TheBusJourney #SMEJourney

2. Jim
Henderson
@TheBusJourney #SMEJourney

3. The Business Journey – “Building The Value in Your Business”
Jim Henderson
Partner
Shirlaws (UK) Ltd
29 Club, Glasgow
Tuesday, 26th August 2014

4. Building Value in Your Business
• Why ?
• Why now ?
• What you need to do ?

5. Why Now ? - Timing

6. Economic Cycle: Some Dates

7. Why Now ? - Baby Boomer Cycle

8. Valuation Equation
V = P x M

9. Profit Growth
Valuation = Profit x Multiple
24 = 4 x 6
36 = 6 x 6 (grow income)

10. Asset Growth
Valuation = Profit x Multiple
24 = 4 x 6
36 = 6 x 6 (grow income)
Or
36 = 4 x 9 (build the multiple)
Or
54 = 6 x 9 (both)

11. Above and Below The Line

12. Valuation Model

13. Shirlaws
• What is your Multiple really?
• Have an Exit Plan
• Build in the skills now for sale tomorrow
• V = P x M above the line and below the line
• Key skills required in a step fashion

14. www.shirlawscoaching.co.uk
jhenderson@shirlawscoaching.com
07817 745958

15. Questions for Jim?
@TheBusJourney #SMEJourney