Helping Clients Build Better Businesses: Value Creation Strategies for Small and Medium-Sized Companies in Advance of a Business Exit

Co-Sponsored by the National Association of Certified Valuators and Analysts®  (NACVA®) 

	Program Description		Who Should Attend
	How You Will Benefit		Schedule

Program Description
The business exit process is complex and filled with uncertain outcomes. Even with a planned strategy, circumstances affecting business owners such as life situations (like retirement, health, family, time commitments, relocation, or burnout), strategic opportunities (like harvest, divestiture, growth, or turnaround situations), and other owner interests (both business or non-business related) outside of the company frequently arise while macroeconomic issues may interject, potentially altering exit outcomes. As a result, only a small percentage of businesses eventually sell. Of the companies that do sell, business owners may not be maximizing the proceeds they receive. Often, the root cause is a lack of advance planning and preparation.

However, a common question about planning and preparation that arises from business owners and advisors is, “Where should we begin?”

To answer this question, this presentation provides a roadmap to uncovering opportunities for value creation in advance of selling a business.

All companies have a business model that explains how they create, capture, and deliver value. Using a tool that is widely used in strategic planning (the business model canvas), this presentation provides an overview of the power of the business model canvas for reflecting on the current state of a business as well as envisioning the future.

Building on the business model canvas, this presentation will dive into content recently published in a series of five articles found in NACVA's The Value Examiner, which provide insightful information to business owners and advisors regarding business value creation. These articles report on insights obtained from a detailed qualitative study involving 50 seasoned certified business intermediaries and exit advisors with median advisory experience of 15 years working with small business owners in the transition of their companies. Open-ended questions were asked to these experienced advisors to capture their unique value creation suggestions used over the years with their clients, covering all areas of the business model. The insights serve as a resource for business owners and advisors to build value and better position a company for an eventual exit. Similar to staging a house for sale, the more presentable the business when it hits the market, the better chance of receiving interest and obtaining maximum value. And, for owners in attractive industries, one never knows when a potential acquirer may come knocking. Being ready is key.

Attendees will leave this presentation with an understanding of how to use the business model canvas to find value creation opportunities within the company, and an extensive list of value creation ideas to explore with business owner clients. In addition, attendees will view results of published research showing how perceived risk can affect acquisitions and deal terms.

How You Will Benefit
After completing this course, attendees will be able to:

• Identify the five core deficiencies in businesses leading to failed M&A transactions
• Explain the basics of a business model
• Identify the nine components of the business model canvas
• Describe how the business model canvas can be used to map both current and future states
• Analyze value creation strategies suggested by experienced M&A professionals
• Recognize how perceived risk can affect acquisitions and deal terms

Take Aways
Attendees will leave this presentation with an understanding of the five core deficiencies in businesses leading to failed M&A transactions. In addition, attendees will learn the nine components of a business model and how to use the business model canvas with their business owner clients to map current and future operations. Attendees will also receive an extensive list of value creation ideas to explore with business owner clients. Finally, attendees will view results of published research showing how perceived risk can affect acquisitions and deal terms.

Delivery Method Group Internet-Based Program Level Intermediate Advanced Preparation None Prerequisites Previous training or research on subject matter being taught. Such persons are often at a mid-level within the organization, with operational and/or supervisory responsibilities.    Finance 1 Total CPE Hours   1

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