Category: Business Valuation

Overcoming Barriers to Growth to Improve Business Valuation (P3)

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Part 3 – Overcoming Barriers to Growth and Improving Business Valuations Management team effectiveness is a very large part of the assessment of business valuation by business buyers and investors such as private equity firms. Critical areas that teams typically address to reduce dysfunction include: Communications Understanding how each member communicates and then how to effectively communicate and resolve conflicts within the team Personal behavior Understanding one’s personal behaviors and how those behaviors impact the team’s Collective Effectiveness Team problem Read More …

Overcoming Barriers to Growth to Improve Business Valuation (P2)

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Part 2 – Overcoming Barriers to Growth and Improving Business Valuations Having a track record of developing and implementing a strategic plan is critical to business buyers and investors such as private equity firms. It has a positive effect on business valuations when the track record can translate into predictability of future performance. An  alignment  driven strategic planning process will be different for some. Yet properly conducted it can provide a comprehensive, efficient means to adjusting varying viewpoints toward a Read More …

Overcoming Barriers to Growth to Improve Business Valuation

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Buyers and investors in companies are buying or investing in the potential for future growth. They assess the organization for predictability of future earnings as part of their business valuation. Ensuring the future becomes reality results not only from keen insight and excellence in execution, but also from overcoming any barriers to growth. Essential actions to overcome the barriers to growth include: Aligning the organization to the plan Reducing team dysfunction Defining competencies  and  behaviors critical to the strategy Companies Read More …

IMPLICATIONS OF CHANGES

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Improving the valuation of a company will clearly imply changes need to be made to the ways in which the management team functions. The implications are clear:  the growth strategies that are inhibited by the corporate dysfunctions require courage to come against the inertia, politics and fear in management teams to address the dysfunctional behaviors.  What is required is a new definition applied to the goals set in organizations.  Essentially, there are two types of goals: task goals and behavioral Read More …

Management Team Dysfunction and Its Effect of Valuation

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One of the major drivers of business valuations is the assessment of the growth potential of the firm. The effectiveness of the management team, and therefore the dysfunctional issues of the management team has a significant impact on the business valuation. Much of the business press has traditionally talked to the issue of looking beyond downsizing, TQM, reengineering, and other tactics to new growth strategies to deliver globally competitive organizations.  As the earlier referenced Wall Street Journal article pointed out, Read More …