By being proactive with a road-mapping process, business owners have better opportunities for long-term sustainable, profitable, growth, through more manageable methods, with greater margins, reduced cost of capital, and greater appeal to outside investors. By beginning this process 1-5 years before a contemplated sale of the business, an owner can realize increased profits along the way and an enormously larger valuation on closing day when they do sell their business.
View our video demonstrating our process.
Through a comprehensive assessment covering 50 categories and linking results to a calculation of value, our firm, along with your senior management team, can customize an implementation plan with advanced visibility of impact on total value.
Contact Us for a complimentary, confidential consultation.
Contact Us for a complimentary consultation on your road-mapping process to long-term sustainable growth and greater appeal to outside investors.
|Private Company Value Gap||Public Company Discipline||Why Should Business Owners Care?|
|Sadly, most private business owners never come close to maximizing the value of their businesses. This is often because they aren't aware of the many factors that drive business value in the eyes of potential investors or acquirers. Recently, several renowned experts conducted research that examined the differences in business values between public and private companies. They concluded that, on average a public company with no debt might be worth five times the value of a "comparable" private company.
At Emerge Dynamics, we recognize why and we know how to help you reduce the gap.
|When companies prepare to go public,
they are guided toward many fine-tuning changes to maximize their value upon entering the public markets. Some of the changes are mandated by laws and regulations, while others are purely part of market expectations. All of the improvements, however, are designed to minimize the risks of investing in that company which, in turn, maximize value. Business owners shouldn't have to go public in order to get the guidance they need to maximize their business value. They should have a dedicated resource available to them, as private companies, so that no matter what corporate transactions they decide to pursue or when they decide to pursue them, they can do so from a position of maximum value and strength.
Emerge Dynamics' mission is to be that resource.
| - During the next 20 years, as the baby boomer generation retires, private markets will be inundated with businesses for sale, leading to more supply than demand. As a result, valuations will suffer, and only the best-of-class companies will sell at any significant value.
- Research conducted by Pepperdine University indicates that in the lower-middle market there is a 40% failure rate on business owners trying to exit, and the majority of the 60% that succeed include seller concessions.
- The primary reason for such a high failure rate, or seller concession, is a gap in value expectations between the seller and the buyer. By being proactive with a road-mapping process, business owners have better opportunities for long-term sustainable, profitable growth through more manageable methods with greater margins, reduced costs of capital, and greater appeal to outside investors.
Emerge Dynamics' company assessment tool, the Value Opportunity Profile®, provides a cost-effective way to identify, prioritize, and implement initiatives that can increase business value by 80% to 100%, independent of revenue and earnings growth improvements, over a 2–5 year period.
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Emerge Dynamics, LLC
Mailing Address: P.O. Box 24667, New Orleans, LA 70184