Creating a valuable company that can thrive without your day-to-day involvement
Partner Gerard O’Reilly introduced the Crowe Horwath approach to ‘Building Lasting Value in your Business’ to a number of SFA members via a webinar on Wednesday 22nd March 2017.
Through his 30-year experience working with small and medium-sized business owners, Gerry has built up a wealth of knowledge about how to:
- Recognise the key issues business owners face which can limit their potential
- Uncover the opportunities and building blocks to build long-term, sustainable value
In discussing his approach, Gerry outlines, “A vibrant economy needs more entrepreneurs and it is our role to ensure they achieve their potential through maximising opportunity whilst controlling risk”. Through extensive research, Gerry has identified a best in class business analysis tool for the SME sector called, The Value Builder System.
The Value Builder System is a software tool which provides an easy to use, comprehensive online analysis of your company. It is backed up by a comprehensive analysis of more than 20,000 businesses and supported by a community of over 600 highly trained professionals worldwide. This analysis is then combined with other analytic tools and Crowe Horwath’s own 75-year experience and expertise working with owner-managers and the SME sector.
Through this webinar, Gerry is able to explain this process and bring it to life through a detailed case study, that all business owners can relate to. In his straight forward approach Gerry asks business owners to consider what a potential purchaser might consider when valuing a business:
- Is it generating, or on the way to, generating the resources to sustain itself – is it profitable?
- Is that revenue stream ongoing – is it predictable?
- Can the business be grown – is it scalable?
- Can the business be protected – is it defendable?
- Is the business reliant on the owner’s day-to-day involvement?
There is a common misconception that a profitable business is always going to be valuable. While that is certainly an important factor, it is only one of eight key pillars that drive value:
- Financial performance
- Growth prospects
- Dependence on key customers / suppliers / employees
- Cash flow
- Recurring revenue
- Control of market
- Customer satisfaction
- Dependence on owner
To find out more about what the value builder approach can achieve for your business, view the full SFA webinar.
If you would like to:
- Start the process to building lasting value in your business,
- Free yourself from the owner’s trap, and
- Put yourself on the road to the financial freedom
Then you need to be looking at our Business Value Builder.