jim henderson
TRANSCRIPT
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The Business Journey
Event No.6
26 August 2014
@TheBusJourney #SMEJourney
Jim Henderson
The Business Journey – “Building The Value in Your Business”
Jim HendersonPartner
Shirlaws (UK) Ltd
29 Club, Glasgow
Tuesday, 26th August 2014
Building Value in Your Business
• Why ?
• Why now ?
• What you need to do ?
Why Now ? - Timing
Economic Cycle: Some Dates
Why Now ? - Baby Boomer Cycle
V = P x M
Valuation Equation
Profit Growth
Valuation = Profit x Multiple
24 = 4 x 6
36 = 6 x 6 (grow income)
Asset Growth
Valuation = Profit x Multiple
24 = 4 x 6
36 = 6 x 6 (grow income)
Or
36 = 4 x 9 (build the multiple)
Or
54 = 6 x 9 (both)
Above and Below The Line
Valuation Model
Shirlaws
• What is your Multiple really?
• Have an Exit Plan
• Build in the skills now for sale tomorrow
• V = P x M above the line and below the line
• Key skills required in a step fashion
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Questions for Jim?