Understanding a company’s value is fundamental for every CEO who wants to run a healthy business. Leaders need to know what factors drive their value, where growth opportunities lie and how their company compares to industry peers.
A business valuation can help with all of that, from estimating a company’s worth to comparing key metrics against competitors. It can help leaders focus on investment decisions and track progress on strategic goals year after year. It can mean the difference between achieving minimal growth and shaving years off an exit goal. However, getting that data can be difficult and expensive.
That’s why we’re excited to announce a new business valuation tool for CE and SB members. It offers an accurate, up-to-date measurement of a company’s value and insights for growth. For the many members interested in selling within the next five years, the information can help reduce the risk of entering negotiations blind and potentially leaving money on the table.
Vistage member since 2020
While the confidential valuation report is indisputably valuable, Vistage members can activate a competitive advantage by tapping into their Chair, peer group or expert speakers to address any shortcomings or to pressure-test an action plan.
This easy, intuitive tool is powered by BizEquity, the world’s only patented online business valuation service and the largest provider of business valuations, having valued over 33 million private businesses globally. BizEquity focuses on small and midsize businesses, making it an excellent benchmarking source for Vistage members.
After filling out a series of questions, members receive a detailed, confidential report that shows strengths and opportunities vis-à-vis others in the industry. CE and SB members can run a report once a year for free, between April and March, as a benefit of membership.
One member who piloted the tool is Steven Faust, Controller of PLM Companies in Hazelwood, Missouri. Faust says he tested the tool after PLM, a holding company specializing in supply chain management, received an offer in 2022 for one of its subsidiaries.
Faust says he completed the process within an hour and received a valuation almost identical to the offer PLM received. While PLM decided not to sell, Faust was impressed with the tool’s ease of use, accuracy and insights.
“The valuation required minimal effort and provided valuable KPIs, highlighting where we performed below or above average,” he says. “This data will be useful for tracking performance annually and boosting our business valuation.”
“It’s something we could use every year to see how we’re doing,” adds Faust.
Complementing the business valuation tool, you can expect a new approach to strategic planning that’s purpose-built to meet the needs of Vistage members.
It will offer an easy-to-understand framework, an educational component and an intuitive process that follows a proven methodology.
The result will be an organized, actionable strategic plan that helps you clarify where you want your businesses to be, evaluate options to get there and decide which initiatives to implement.
