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Have you ever seen runners line up for a race not knowing where the finish line is? This would never happen, right? Whether you’re starting a new business or expanding a current business, the implication is the same. Before you begin the race, you need to know where you expect to finish. Greentree utilizes a proven, process driven approach to provide companies of all sizes with a roadmap to success and higher valuation. Greentree’s Revenue and Business Growth Audit works for most any Company during every stage of their life cycle. Revenue and Business Growth Audit “R&BGA” is an exit strategy planning process that creates a plan for you and your Company to win the race of business success. Our R&BGA process enables you to make the best decisions for maximizing your company value and future.
It is important to remember that acquisition prices are not a function of either historical earnings or book value. Instead, price is a function of expected future earnings and the risk in achieving those earnings given the company’s business foundation at the time of sale. The goal of exit strategy planning now becomes the timing and planning of the sale to generate a premium price. The GP process focuses on how to strengthen the company's business foundation. This helps position the company as growth-oriented with expectations of strong future earnings from a solid business foundation that minimizes the risk of achieving those earnings.
Exit strategy planning is much more than a financial analysis. It is an advisory process that increases an owner's chance of realizing a premium-priced, all-cash deal. It can enable sellers to obtain the maximum funds for the many years that they have dedicated to their businesses. It should also result in their being completely securitized by a strong definitive purchase agreement with the majority of risks borne by the acquirer.
Your future and the future of your company are too important to leave to chance. Utilizing GP’s R&BGA planning process you become more fully prepared for your largest business transaction.
The biggest mistake Board of Directors, CEO’s and Founders often make is not putting in a process long before a liquidity or exit event is desired or presented. The Greentree Partner’s know from experience, maximizing shareholder value is a process, (see Corporate Development Services) just like any other part of growing your business. In many cases, we are contacted by founders and CEO’s frustrated with slow growth, competitive challenges and a changing market place which are all causing them to consider selling their business. However, in most cases their Company is not ready to be sold, but circumstances dictate that they must. Transactions can and are done for companies with an incomplete business model, poor documentation, small customer base, technology that needs work, inconsistent and unpredictable growth, poor profits and even substantial losses or debt. These are circumstances that Greentree often has to work around, or ideally, fix before shareholder value can be maximized.
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