how ordinary companies create extraordinary value

How Ordinary Companies Create Extraordinary Value

Presented ByJoel Strom

www.cksadvisors.com480-451-1223

6263 N Scottsdale Rd Suite 390Scottsdale, AZ 85254

Larry

Larry made it not just about EBITDA!

Larry Moved his Company from: A nice to have to A got to have!

Larry did it by accelerating his company’s Strategic Value

Larry waited to do it pre-sale It worked …but what did it cost him?

The key to increased company value is to make your company stand out

To make it aGot to Have

The rule of thumb for determining company market value is using a multiple of earnings

A “Got to Have” company moves market value beyond the “rule of thumb”

Creating a “Got to Have” comes from creating Strategic Value

Strategic Value does more than simplymove the multiple

Strategic ValueImproves operating results and EBITDAIt makes you more $

Strategic Value provides owner/ management options

Strategic Value provides investment insurance

No matter where you are in your business or personal like cycle…

It is always the right time to be Building Strategic Value

Factors of Strategic Value Finance Strategy Operations

The Market

For Each Strategic Value Factor there is aCore Focus and there are Strategic Value Components – 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 model

Select Strategy SVC’s Strong "owned" brand and niche Innovation – Evolution

“You own it”Scalability

Contracts/recurring revenueDiversification

OperationsCore Focus – Create a stainable high performance organization and

operation

Select Operations SVC’s

“Real" company practicesManagement teamOutside adviceOwner’s role and importance to continued success

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 it happen?Follow this 5 step process

Step #1Unbiased assessment of the company’s current SV situation-

Rule #1 - Don’t kid yourself

Step #2Determine goals – set a target

Step #3Develop Strategic Value Acceleration Roadmap to reach target

Step #4Create, implement, and monitor the Roadmap

Step #5Continually monitor the industry and “The Market”

The SV Roadmap implementation process must become one of the owner’s primary responsibilities

Common Advice:Manage the business everyday like its for sale

My Advice:Manage the business everyday to make itA Got to Have

Common Statistic:80% of Businesses are not ready for sale

Un-Common Statistic:Think how few are Got to Haves

Questions Copy of the Presentation

Joel Stromjstrom@cksadvisors.comDirect line 480-745-3088 www.cksadvisors.com

CKS Advisors LLC6263 Scottsdale Rd Suite 390Scottsdale AZ 85250