Term 1 of 40
805 of a company's value usually rests within where?
The difference in cash flow your are producing vs BIC. Calculated by taking BIC EBITDA as
% of Sales and multiplying that by your TTM sales.
Subtract BIC from your number = Profit Gap
Owners perception of the business value versus its real value.
A personal envisioning workshop and a business envisioning workshop. this exercise will
enable you to eventually connect your vision to your 90-day prioritized actions, which are
called big rocks.
Intangible assets vs tangible.
Term 2 of 40
How do you get Recasted EBITDA?
you analyze the market trends and customer satisfaction ratings.
you focus on the net profit margin of the business over the last five years.
you calculate the total revenue minus total expenses for the year.
you adjust any number on the income statement that does not reflect a true picture of the
cash flows of the business.
,Term 3 of 40
Post triggering event you should immediately complete two workshops...
Personal plan, financial plan and business plan
maximizing
the value of the business, ensuring you are personally and financially prepared to maximize
net proceeds,
and ensuring you have a plan for what you are going to do next.
a Personal Envisioning Workshop and a Business Envisioning Workshop. This exercise will
enable you to eventually connect your vision to your 90-Day prioritized actions, which are
called Big Rocks.
The difference in cash flow your are producing vs BIC. Calculated by taking BIC EBITDA as
% of Sales and multiplying that by your TTM sales.
Subtract BIC from your number = Profit Gap
Triggering Event - a business valuation correlated to a personal, financial, and business
attractiveness and readiness to determine where the business value lands in the range of
value.
Term 4 of 40
Where your business is in the range of value depends on what 3 factors?
if you scored poorly, it is likely that your financial performance as benchmarked
against others in your industry is poor as well.
Compare your EBITDA as % of sales to the industry.
(1) the results of your financial analysis and benchmarking; (2)your attractiveness score; and
(3) your readiness score.
1) Mid month 1:1 check in
2) End of the month accountability workshop
3) Quarterly Renewal Workshop
It is "recasted" cash, usually expressed as EBITDA, times a cash market multiple and
recasted sales times a sales market multiple
, Term 5 of 40
What is after the triggering event?
Conducting a comprehensive market analysis.
Implementing a new marketing strategy immediately.
Reviewing the company's historical financial performance.
Creating a prioritized action plan
Term 6 of 40
What is Gate 2?
Prepare
Decide
Discover
Explore
Term 7 of 40
Definition of Value Gap
the value gap is the quantified
dollar value of the difference between your present value and the value of similar best-in-
class businesses in your industry
The market will take this range up and down depending on the state of the private capital
markets, economy, and the
industry you are in. You can't control this. BUT YOU CAN CONTROL WHERE YOU FALL
WITHIN THE RANGE
you adjust any number on the income statement that does not reflect a true picture of the
cash flows of the business.
All about execution, and focusing on now. Now is the 5 business and 5 personal actions for
the next 90 days.
90 day sprints toward accomplishing 10 prioritized actions.
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