(Pictured: Carl J. Cox in left field, bleachers at Wrigley Field, Chicago)

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 by 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.

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 to 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 with $1 million in profits, 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. That is how much trapped value there is in a typical business.

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 6–9 months to close.

Let’s say you want to sell sooner?

You may not be able to earn the value back, but 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.

Measure Success Podcast 

Dane Groeneveld | Embracing Discomfort: The Secret to Team Growth

This week’s episode, unlocks the secrets to team excellence in our latest podcast episode now streaming on YouTube! Join Dane Groeneveld and Carl J. Cox as they explore the transformative power of embracing discomfort within your team.

🌟 Episode Highlights:

• Dive deep into why stepping out of comfort zones is crucial for both personal and team development.
• Learn actionable strategies to introduce and manage discomfort in a way that promotes growth and resilience.
• Gain insights from real-life stories of leaders who’ve successfully navigated discomfort to enhance team dynamics and performance.

Sheldon Bernard | Mastering Decision-Making in Uncertainty with Sheldon

In next week’s episode of the Measure Success Podcast, we talk about decision-making under uncertainty with 2nd time guest, Sheldon Bernard, founder of 440 Management. Sheldon shares his groundbreaking insights on confronting complex issues with applied decision sciences.

🔍 What to Expect:

• Explore the significance of recognizing and combating cognitive biases.
• Discover Sheldon’s innovative framework for making better decisions in the face of uncertainty.
• Learn why outcomes should not be confused with decision quality.
• Sheldon’s reflections on generative AI and its impact on business strategy.

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