Value Improvement

VALUE IMPROVEMENT

How much is your business worth? Is the value greater than it was?

When the time comes to sell, will your business value be at its peak? Or will it be one of many no one wants to buy?

BROWN ADVISORS works closely with owners and managers (leaders) to significantly increase the value of the business through a well-designed and executed Business Value Improvement and Business Transition Strategy. Done correctly, the sale of the business or practice – which occurs right at the end – can produce a larger return for the owner than expected.

WHAT CREATES VALUE

When we engage with a business to improve its value, we review the market activity taking place within the company’s industry. We want to know who is buying and what they are looking for when acquiring a business or practice. From this we are able to determine the “value drivers” a business should build when preparing for its sale.

The only reason any company buys another is because they believe:

  • They can increase the value of the company they are buying, and/or
  • They will increase the value of their company.

Buyers typically have different elements in their business which will improve their value. However most successful company sales take place when the combination of the two businesses – the buying company and the company sold – increases the total business value, its growth and profits faster than what the buyer can do on their own.

WHAT WE HAVE DONE

Example 1 – Architect/Engineering: Over a period of several years, the owner of this successful architectural/engineering firm had bought out the other partners. During this time the practice had developed a niche market that kept it busy and allowed it expand throughout the country. After we facilitated a discussion with the twenty licensed professionals (architects and engineers) it became apparent that some of the key people were considering leaving the practice so that they could do less of the work that had become “routine” and focus on doing projects that were more demanding and potentially more rewarding. If this were to happen, the firm would suffer a significant “brain drain,” impacting its immediate performance as well as its long term value.

Working with the owner and the firm’s senior personnel, we designed a strategy that allowed experienced professionals to obtain additional credentialing which enabled the firm to pursue new avenues of work. Not only did they develop their capabilities, but the remained with the firm and contributed to its growth. Younger professionals were hired and received the training necessary to assume responsibility for the firm’s historic practices. As a result, the firm continued to grow without sacrificing its core business or losing any of its key people.

When the firm sold, its historic reputation, its experienced and well-rounded staff, and its capabilities in energy efficient design resulted in a premium price.