What are the Four intangible Capitals or "Four C's"?
Human Capital, Structural Capital, Customer Capital, & Social Capital
How much of a business' value (in percentage) is trapped inside the four
intangible capitals or "Four C's"?
80%
What is Human Capital?
It's the people in the business. Employee tenure, experience / talent level,
management team succession plan, management team strength, etc.
What is Structural Capital?
The most robust of the "Four C's", this includes everything from the real estate,
intellectual property, equipment, process & documentation, IT, systems (including
financial & accounting systems), etc.
What is Customer Captial?
Depth of customer relationships, customer entanglement, customer
concentration / diversification, contracts, etc.
,What is Social Capital?
Culture within & outside the company. How people relate outside of the
company. This is developed over time after all other intangible capitals are
established/improved.
What are the three gates (in order) of the Value Acceleration Methodology?
Discover, Prepare, & Decide
What are the Three Legs of the Stool?
Business, Financial, & Personal
What is the Wealth Gap?
Understanding the owner's wealth goal (how much money they'll need to fulfill
personal needs) and the current value of their assets (not including their
business). The gap or difference between these two is usually filled by the
business' value.
What is the Value Gap?
The difference between the owner's current business value and the Best-In-Class
business value.
What is the Profit Gap?
,The difference between the owner's current business profit (or recasted EBITDA)
and the Best-In-Class business profit (or recasted EBITDA)
The two concurrent paths are in which gate within the Value Acceleration
Methodology?
The Prepare Gate
What are the two concurrent paths within the Prepare Gate?
The risk mitigation (De-risk) / business improvement path
AND
The personal/financial ("Vision") path
What is the ONE goal of the Value Acceleration Methodology?
To drive value across all three legs of the stool (business, financial & personal)
How much of an owner's wealth (in percentage) is locked in their business?
80-90%
What's the difference between a Lifestyle Business and Value Creator Business?
Lifestyle business = good income; not transferrable
, Value creator business = good income; transferable (owners treat their business
like an asset)
Most owners don't address what kind of planning?
personal planning
What is the calculation for Recasted EBITDA?
Addbacks + EBITDA = Recasted EBITDA
What does EBITDA stand for?
Earnings Before Interest, Taxes, Depreciation, & Amortization
What are the three gaps within the Value Acceleration Methodology?
Wealth Gap, Value Gap, & Profit Gap
What are the Five Stages of Value Maturity in order?
Identify, Protect, Build, Harvest, Manage
In the Five Stages of Value Maturity, what occurs in the "Identify" stage?
Identify and asses the business value. Understand how ready and attractive the
business is. What is the current value? What is it's potential value? What are the
gaps?
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