One of the most frequently asked questions we receive from business owners is “how do I enhance the value of my business?”

Value enhancement strategies can range from competitor and client analysis through to marketing strategies and industry comparison, and when performed together can make a significant difference to a company’s value and ultimately its sales price. At Eagle Advisory Services we offer a range of Business Improvement services to help prepare companies for a successful sale or exit.

VALUE FOCUSED APPROACH

Expectations to deliver high acquisition value quickly are ever increasing. We take a rigorous value focused approach to identify value sources early.organize around them, align planning & execution activities to focus on the most important areas to achieve integration success.

DIVESTITURES 

We advise on sales in both strategic and distressed situations. We may also advise on financial and strategic alternatives to a sale, such as recapitalizations, spin offs, carve outs, split offs or tracking stocks.

CUSTOMIZED INTEGRATION

Our strategic blueprint ensures early alignment on key integration outcomes. We consider deal size and structure. industry sector and unique client requirements to customize the integration approach to deliver maximum value and unparalleled customer experience.

INDUSTRY SPECIFIC FUNCTIONAL EXPERTISE

Our highly experienced integration professionals provide an expert driven partnership model to our clients.We assign team members to engagements who are experienced in the industry, know & understand your business. They also understand your customers base and are proven functional and merger integration experts.

Our Financial Restructuring Group provides financial advisory and M&A Advisory services to companies, financial sponsors, trustees, liquidating agents and other interested parties in connection with financially stressed situations and transactions  Our experience includes serving companies for Mergers and Acquisitions but also help other clients with an acute need for financial restructuring and those in potential bankruptcy situations. In collaboration with a large group professionals in our platform, we also serve a wide range of industries, including financial institutions, Insurance, Warranty, Accounting & several other industries. We are familiar with all aspects of Mergers and Acquisitions, also related issues and have extensive experience working with existing Ienders to assist clients until all pertinent transactional possibilities are explored & funds are secured.

Financial Improvement Analysis

Taking our ratio analysis, and using the experience our evaluation team members we often make recommendations to clients on specific programs to implement to grow sales, improve margins, improve inventory turns, clean up payables, and enhance ongoing operations. Again, all with the goal of ultimately not just improving operations, but enhancing the company’s value.

Industry Comparisons

Determining where a company stands in relation to other industry players is also a key service that is part of our process improvement program. Industry research from several sources can be used to compare growth rate, margins, competitive strengths, and intangible assets, all with the goal of deciding what areas of the business need the most improvement. Our cutting edge research tools allows us to make better, more accurate analysis and data to assist in making more powerful decisions.

Key Client Review

Who are your key clients and why are they important to your business?

If you lost one (or more) what would that do to your company’s earnings?

 

Our team will walk you through this analysis and ensure that your key clients are ‘key’ to you for the right reasons.

Marketing & Sales Strategy Improvement

Too often we encounter clients who generate a significant amount of revenue from a few key clients. Usually this is due to incentive programs that encourage sales teams to spend more time servicing accounts than working to find new ones. In addition, marketing budgets often are too low by industry norms or lacking altogether. Our teams provide key ideas on how to improve sales and by doing so, throw more money to the bottom line.

Operational Performance Analysis

How is your company performing in relation to industry norms?

How are your profit margins, operating margins & other key metrics in comparison to standards?

How often do you reviewed your purchasing department policies & procedures regarding RFQ? When was the last time you reviewed and updated your operational manuals?  

 

This analysis is key because it often shines the light on areas of your operations that have not been examined in years. All of these are key to improving your company’s valuation.

Pricing Analysis

Frequently our clients lock their key customers into long term contracts that simply renew year after year without any analysis. It is vital to make sure that as your costs go up, so too are long term pricing relationships, even with key accounts. Doing so allows us to again, improve the value of our clients’ businesses because even a few percentage point increases in margins can make a big difference in valuation.

Profit Margin Analysis

Most business owners rarely (if ever) do a comprehensive profit margin analysis by client, market, and product line. This is vital for business operational improvement because even slight improvement in your pricing structure in critical areas can generate significant future earnings that could be attractive to buyers.

Ratio Analysis

In order to determine how a company compares to other industry players, it is vital to do a comprehensive ratio analysis on the business. This enables our Financial Analysts and Evaluation Managers to determine how healthy a business’s income statement and balance sheet are when compared to industry standards. Depending on the industry, we usually examine 10-12 ratios that are standard to determine financial health.

Roadmap for Enhancing Value

Our Roadmap for Enhancing Value (REV) is designed to give business owners specific strategies to pursue, to enhance and improve the valuation of the company over time with the goal of going to market at some point in the future. We evaluate 12-18 metrics that are benchmarked to our valuation improvement targets. Clients are given two updates at no additional charge over a five-year window to see how their efforts are enhancing the value of the company

Strategic Growth Options (new markets, new products)

Are there new markets for your existing product line(s)?

Have you ever asked your clients what else you could provide them that they need?

These are important areas to review because they often reveal new areas of business that you have not considered before. Our teams will get you thinking about them as we ask questions relating to new markets and products.