Do you know exactly what your company is worth, and if it was for sale, how much you would want to sell it for?
At The Alpha Group we make certain that you identify the critical factors which depress your current profit multiplier and calculate your new target multiplier and devise a plan to achieve your desired market value.
So, how does this happen?
Easy, its a six step-process using the power of the peer-to-peer advisory board.
Firstly the peer-to-peer advisory board help you identify the three biggest critical factors which currently depress your profit multiplier.
You and your Directors are essential to your business
You are in a highly competitive market
You have little recurring (e.g. service and/or licence) revenue
You only have a few key customers all in one market sector
Your new products or new services are only in the development phase
You have weak financial controls
You only have a small market share
You have inadequate protection of your contracts and intellectual property (e.g. trademarks)
Factors which are unique to you, other critical factors which depress your multiplier that are unique to your company/business?
Which are the top 3 factors out of the 10 above which are currently having the biggest impact on depressing your profit multiplier?
Secondly the peer-to-peer advisory board help you calculate your current profit multiplier and predict your future multiplier.
MULTIPLIER 1. 2. 3. 4. 5. Score
Where are you currently?
You & your Directors
Your licence & service revenue
Your new products & services
Me & my Directors are essential to my business
An autonomous management team with a succession plan in place
A highly competitive market
We are in our own niche market, high barrier to entry
Our recurring revenue < 10% total annual sales
Our recurring revenue > 80% total annual sales
< 5 key customers in 1 sector
10 key customers in 3 sectors
Our new single product/service remains in development
We have a fully developed range of new products & services
YOUR TOTAL SCORE x4= Your current & predicted profit multiplier ÷10= 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5
Thirdly the peer-to-peer advisory board help you calculate the current market value of your company and plan your desired market value.
Where you are now
Where you want to be within 2/3 years
Your annual sales (S)
Your % operating profit (OP)
Your annual operating profit (1 x 2)
Your profit multiplier (M)
Fourthly the peer-to-peer advisory board help you decide your next actions.
To refine your plan for your desired market value, what are your immediate next actions?
To engage your Team in your plan, what are your next actions?
Lastly the peer-to-peer advisory board help you take massive action.
The profound impact on you and your company of planing your desired market value is that you increase your profit multiplier and achieve your desired market value.
If you would like to find out more about how The Alpha Group members plan their desired market value then please get in touch and I will be happy to send you further information about visiting a suitable group, online, face-to-face or blended with a mixture of real world and virtual board meetings.