In between client visits, I was able to check a few things off on my bucket list, including a visit to watch Major League Baseball in Wrigley Field in Chicago and Busch Stadium in St. Louis. Terrific venues, I highly recommend if you have not been there before.

The baseball trip reminded me of the movie, Moneyball, starring Brad Pitt, in the role of General Manager, Billy Beane of the Oakland A's. Billy Beane realized there has to be a better way to win in baseball, especially when a team has budget constraints. He hired an Ivy League graduate, Peter Brand (played by Jonah Hill) to use statistical analysis to gain a competitive edge. Billy Beane changed baseball analysis forever.

We are seeing a similar transformation in strategic analysis. Traditional strategic tools such as SWOT are rarely analytical; nor do they provide the data needed to predict, what value will a specific strategy create for our clients.

Now, we have the ability to answer this question.

Using our new Strategic Capacity Analysis tool to evaluate 40 different strategies,  

We asked, "What strategies will increase our client's value by $1 million?"

I was super curious about the answer to this question.

So I rolled up my sleeves, pulled down the green eye shade for deep analysis.

We ran the data with multiple clients and confirmed that it was accurate compared against the latest market comps. 

40 Strategies & Money Ball! 

This past week i was able to check off some bucket list items - 

With a client we did a money ball experiment to see how to increase the value of thor business 

What strategies will increase our client's value by $1 million?

Today, I was super curious about the answer of this question.

So I rolled up my sleeves, pulled down the green eye shade for deep analysis.

We ran the data with multiple clients and confirmed that it was accurate and compared against the latest market comps.

Brief disclaimer, every industry has different multiples, therefore to be accurate, we have to run your specific company through the calculator.

Our data has been normalized with companies with $1 million in EBITDA. (Earnings before interest, taxes, depreciation, and amortization - the gold standard for private equity comparisons.) For simplicity, we will call this $1 million in profits going forward.

Therefore, your results will be higher if your profits are above $1 million, and the inverse is also true.

If a company was fully valued, it would be worth $6,948,474. Let's round that to $7 million.

This is the kicker, the average company was only worth $2,999,424, let's round up to $3 million.

$4 Million Loss!

That’s right, our analysis showed a $3,949,050 gap, or a cool $4 million in cash.

That means if the average owner sold their company to a wiser buyer, the buyer could gain up to $4 million in value, WITHOUT increasing profits! And the seller would never know.

Say what?

That’s right!

You ever wonder why you have so many phone calls to buy your business?

That’s crazy, the average small business is discounted by 57% compared to what it could be worth. 

I don’t know about you, but $4 million is a lot of money to give up if you’re considering selling your company.

What’s our Strategy to Sell for More?

The next step is to do an analysis of your risks. What areas of your business are not performing up to the standards needed to gain full value?

Our tool identifies exactly which strategies and how much value that you will get from implementing.

Although we have 40 key strategies to improve the value of your business, we found that we need to fix only the top 8 strategies to earn back $2,070,181 or over 50% of the value back. That’s right, 8 strategies = 2 million.

40 Strategy Quarterly Sprints for Dough

If you plan to sell your business within 3 years. You could comfortably implement one of the strategies each quarter, and by the end of two years, you will have all 8 implemented. This will enable you to earn 50% of that value back before you go to market in year 3, which typically takes a year to close.

Let’s say you want to sell sooner?

Bad news, you may not be able to earn the value back, good news, your top 3 strategies can earn you back $919,301, or nearly $1 million. And if you implement two strategies per quarter, you can earn that $2 million back.

Interested in learning what 8 strategies will earn you $2 million in value?

Start our assessment here now, and we will follow up with you the next business day.