Based on its extensive experience advising owners of middle market businesses, The McLean Group has developed a proprietary process that analyzes more than 60 value/risk drivers that may have a significant impact on the value of a business. These are the factors that sophisticated buyers evaluate when determining whether or not to buy the business and how much to pay for it. After determining the current status of the business, each value driver is evaluated in terms of its impact on valuation and its importance given the owner’s goals and objectives. This analytical framework allows The McLean Group to identify those value enhancement opportunities that will have the greatest impact on the business.
The value building strategy involves five-steps:
1. Clarify and prioritize the business owner’s goals and objectives
2. Determine the business’ value
3. Analyze value/risk drivers
4. Develop blueprint to capitalize on strengths and shore up weaknesses
5. Periodically review metrics, adjust action plan and reassess likelihood of attaining stated goals
Drawing on the firm's experience in valuing, buying and selling businesses, and its experience in implementing value enhancement programs used by Fortune 100 businesses, The McLean Group explains in detail to clients the steps a business owner might take to position the business in order to attain the highest possible transaction value at the time of exit.
