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Business Risk and Your Company Exit Valuation

Managing risk is key to one day receiving a premium valuation

In a recent podcast, retired General Stanley McChrystal shared his definition of Risk. He offered that Threats x Vulnerabilities = Risk.

As business leaders this formula applies in our world as well. Ask yourself this question – what threats to my business am I aware exist and where is my company vulnerable to them? The answer defines your known risk.

This is important to identify for both an obvious reason but also a less obvious one. The obvious one is it makes good business sense to work with your team to monitor threats and vulnerabilities and take steps to negate or minimize them for the purpose of protecting the value, or worth, of your company. The less obvious reason is when the day comes to try and sell your business to a third party, they may be aware of potential external threats a company like yours faces and will expect to hear your insights, even your plans, about how your company is already or is planning to address them. Not being able to articulate your plans to address the threat(s) could negatively impact the valuation they place on your business.

Here are steps you should think about taking soon:

  • Meet with your leadership team and brainstorm the threats and vulnerabilities you have line of sight to either currently underway or could have a high probability of happening in the foreseeable future.
  • Talk with your advisors and get their external perspective on threats they believe a company like yours could face.
  • Talk with select customers or suppliers and see what their perspective is regarding threats in your industry.
  • Follow one of your industry think tanks as they are very good at predicting industry threats and opportunities.

Use time as a friend in monitoring the risks to your business. And determine those that you should take action soon and those that you should be monitoring closely – both great steps in the early stages of ensuring your company is prepared to one day help you be euphoric from its future sale event.

Use Greenpoint Testing to Achieve Your Desired Exit Valuation

It only takes 106 questions, scanning 10 essential business functions, to stress test your readiness for a successful exit.

However, these questions require thoughtful commitment to achieve your desired exit valuation.

During this up to hour-long online testing, you'll see questions such as the following.

Sample Question 02

After internalizing each question, select among three answer options – Agree, Unsure and Don’t Agree – choosing the answer which best describes you and your business.

Then, complete the Greenpoint questionnaire to unlock your personalized report, which will reveal any gaps in your planning, pointing to the action steps needed to maximize your desired exit valuation.

Format: Digital

Delivery method: Email

Report included: Your Greenpoint results

Stethoscope Frees You to Work On Your Business, Beyond In It

120 questions, scanning 10 essential business functions, free you to work ON your business, rather than solely IN your business.

With each question requiring thoughtful commitment to identify opportunities to further your success.

During this up to hour-long digital Q&A, you'll see questions such as the following:

Sample Question 02

After internalizing each question, select among three answer options – Agree, Unsure and Don’t Agree – choosing the answer which best describes you and your business.

Complete the Stethoscope questionnaire to unlock your personalized report, which will expose gaps [if any] in your planning, and tips for future growth, resulting in action steps needed to maximize your thinking as a business leader.

Format: Digital

Delivery method: Email

Report included: Your Stethoscope results

Be Ready for The Probe of Due Diligence

109 questions, scanning 10 essential due diligence disciplines, to prepare for a roadblock free Probe of your business in anticipation of sale.

And to potentially increase the value of your business by your professional transparency.

With each question requiring thoughtful commitment to identify opportunities to further your success.

During this up to hour-long digital Q&A, you'll see questions such as the following:

Sample Question 02

After internalizing each question, select among three answer options – Agree, Unsure and Don’t Agree – choosing the answer which best describes you and your business.

Complete the Probe Diagnostic Tool questionnaire to unlock your personalized report, which will expose gaps [if any] in your planning for a due diligence Probe, resulting in action steps needed to maximize your readiness when diligence is due.

Format: Digital

Delivery method: Email

Report included: Your Probe results