What is your Value Enhancement Gap?
The Value Enhancement Gap is the difference between what your business is worth today and what it could be worth in the future. To determine this gap, we begin with an estimate of value today based on the Business’s Attractiveness and Readiness, EBITDA, and the strength of your Human, Social, Customer and Structural Capital. We compare that value to a similar estimate of Average and Best in Class Businesses in your Industry.
Each industry will generally have a range of multiples that business sell within. The more attractive your business to a potential buyer, the higher your business valuation. To determine Estimated Enterprise Value, multiply your EBITDA by the multiple for your industry and your business. (EBITDA = Earnings before interest, taxes, depreciation, & amortization)
Investing your time and resources into improving your business often can generate a 4-7-fold increase in value, by moving your Company from the bottom quartile to Average and another 2.5-time increase moving your Company from Average to Best in Class. Now is the time for you take control of your future and destiny and significantly increase your wealth.
A professional advisor and a solid, customized plan can help you navigate the crush of responsibilities that come with business ownership and keep you in control. To learn more or begin the process, please call Larry, Dell, or complete our complimentary 10-minute high performance business assessment below.