As we continue discussing how to close the gap between what you have and what you need, let’s look at business fundamentals and how to address them to build business value. Business fundamentals are those basic housekeeping tasks that reduce your risk. We want to put into place mechanisms to protect business value. Business fundamentals [...]
Selling to Insiders – How Much Can you Sell your Home Care Business for?
If you wish to transfer your business to an insider(e.g. employees, children, co-owners) and want to receive full value, then generally that value cannot exceed four times your true cash flow. We define “true cash flow” as the pre-tax money distributed to owners via salary, bonuses, company distributions such as S-distributions, and all rental payments [...]
Key Value Drivers for Home Health Care Business Owners
Do you ever wonder why one business commands top dollar from multiple buyers while another sits on the market for months–or even years? Do you wonder what characteristics buyers look for in a prospective target for home care merger and acquisition? Before the sales process even begins, you must build value within your business to [...]
Value Driver 4: Leveraging Human Resources
We have been discussing the various methods home care owners use to build valuation in their companies to achieve their exit planning goals. Foremost in this process is creating a written value-building plan, which includes four important value drivers: Value Driver 1: Business fundamentals Value Driver 2: Strategic Planning Value Driver 3: Systemizing Internal Operations [...]
Value Driver 3: Systematizing Internal Operations in your Home Care Business
*We have been discussing various methods business owners use to build value in their home care companies to achieve their post-exit goals. Foremost in this process is creating a written value-building plan, which includes four important value drivers, today we discuss Value Driver Three, Systemizing Internal Operations in your Home Care Business The systematization of internal operations [...]
Value Drivers? Have you Created Systems that Key Employee’s Can Execute in Your Absence?
Case Study Dawn and Preston Slater, owners of a machine shop with $7 million in annual revenue, sat down and announced, “We have decided to leave the business as soon as possible. We’ve got our management team in place and want to execute a transfer of the entire business in the next six to 24 [...]
