1. How Ordinary Companies Create
Extraordinary Value
Presented By
Joel Strom
www.cksadvisors.com 6263 N Scottsdale Rd
480-451-1223 Suite 390
Scottsdale, AZ 85254

2. Larry

3. Larry made it
not just
about
EBITDA!

4. Larry Moved his
Company from:
A nice to have
to
A got to have!

5. Larry did it by
accelerating his
company’s
Strategic Value

6. Larry waited to do it
pre-sale
It worked …but what
did it cost him?

7. The key to
increased company
value is to make
your company stand
out

8. To make it a
Got to Have

9. The rule of thumb for
determining company
market value is using
a multiple of earnings

10. A “Got to Have”
company moves
market value beyond
the “rule of thumb”

11. Creating a “Got to
Have” comes from
creating Strategic
Value

12. Strategic Value does
more than simply
move the multiple

13. Strategic Value
Improves operating
results and EBITDA
It makes you more $

14. Strategic Value
provides owner/
management
options

15. Strategic Value
provides
investment
insurance

16. No matter where you are
in your business or
personal like cycle…
It is always the right time to be
Building Strategic Value

17. Factors of Strategic Value
Finance
Strategy
Operations
The Market

18. For Each Strategic Value
Factor there is a
Core Focus and there are
Strategic Value
Components – SVC’s

19. Finance
Core Focus –
Create consistently
improving performance

20. Select Finance SVC’s
Real/attestable financial statements
No co-mingling
Appropriate outside service providers

21. Strategy
Core Focus –
Identify and strengthen a
uniqueness in products, markets,
geography, processes, business
model

22. Select Strategy SVC’s
Strong "owned" brand and niche
Innovation – Evolution
“You own it”
Scalability
Contracts/recurring revenue
Diversification

23. Operations
Core Focus –
Create a stainable high
performance organization
and operation

24. Select Operations SVC’s
“Real" company practices
Management team
Outside advice
Owner’s role and importance to
continued success

25. The Market
Core Focus –
Create a position of
industry/ niche
leadership and visibility

26. Select “The Market” SVC’s
Awareness and
visibility
Positioning
Controlling the process

27. How can you make it
happen?
Follow this 5 step process

28. Step #1
Unbiased assessment of the company’s
current SV situation-
Rule #1 - Don’t kid yourself

29. Step #2
Determine goals – set a
target

30. Step #3
Develop Strategic Value
Acceleration Roadmap to reach
target

31. Step #4
Create, implement, and
monitor the Roadmap

32. Step #5
Continually monitor the
industry and “The Market”

33. The SV Roadmap
implementation process
must become one of the
owner’s primary
responsibilities

34. Common Advice:
Manage the
business everyday
like its for sale

35. My Advice:
Manage the
business everyday
to make it
A Got to Have

36. Common Statistic:
80% of Businesses
are not ready for
sale

37. Un-Common Statistic:
Think how few are
Got to Haves

38. Questions
Copy of the Presentation
Joel Strom
jstrom@cksadvisors.com
Direct line 480-745-3088
www.cksadvisors.com
CKS Advisors LLC
6263 Scottsdale Rd Suite 390
Scottsdale AZ 85250