Building the value of your business
As your fractional Exit Director, I help you build a business that is worth more and depends less on you, whether you plan to sell, hand over or keep your options open.
Your largest asset deserves a plan
For most owners, the business is their largest asset. Yet many have only a rough idea of what it is worth or what a buyer would pay, and fewer still have a plan to increase that figure.
I join your senior team for a fixed period, we agree in writing what the engagement must achieve, and I share responsibility for delivering it. Some owners are planning a sale. Others want to hand over to a management team or successor, or simply keep their options open.
Coaching, consultancy or fractional leadership?
Owners preparing for succession or sale usually choose between three kinds of outside help. Each has its place, but they work in very different ways.
Swipe the table sideways to compare all three.
| Business coaching | Consultancy | Fractional leadershipHow I work | |
|---|---|---|---|
| What it involves | A coach helps you think through challenges and holds you to account for the actions you choose | A consultant analyses the business and recommends what to change | A senior leader joins your team part-time and leads the changes with you |
| Who does the work | You | Your team, once the recommendations are delivered | You and I, together with your team |
| How success is measured | Your progress against goals you set | Delivery of the report or recommendations | Agreed business outcomes, such as an increase in value or a successor in place |
| How long it runs | Often ongoing, month to month | A defined project | A fixed term, tied to the outcomes |
| Best suited to | Owners who want a sounding board and accountability | Specific technical questions or analysis | Owners who need senior capacity to make change happen |
Outcomes agreed in writing, before we start
We agree in writing what the engagement must achieve, based on your business and your plans for it.
We review progress every month, and the engagement has a fixed end date, so the work stays focused on increasing value and you always know what you are paying for.
Outcomes might include:
- A smaller share of revenue from your largest customer
- A management team in place that can lead the business
- Ready for due diligence by a set date
Why it pays to start early
Buyers and investors pay for a business that keeps performing after the owner steps back. They look closely at the quality of earnings, the strength of the management team, how much the business depends on a few customers or on the owner, and how well it is run and documented.
Owners who leave this until a sale is under way often find problems during due diligence, when there is no time to fix them and the price suffers. Starting two to five years ahead gives you time to address the issues and show a track record of improvement.
A sellable business is a stronger business
You don’t have to be planning a sale to benefit.
It reduces risk
If the business relies on you for every key relationship and decision, it is vulnerable when you are ill, on holiday or unavailable. A sellable business keeps running in your absence.
It improves profitability now
Clean numbers, sound margins on every client, efficient processes and less reliance on you improve cash flow today, not just the price later.
It keeps your options open
Health, family, a partner who wants out or an unexpected offer can force a decision. If the business is ready, you choose the timing.
It turns effort into lasting value
Years of hard work only become a transferable asset when the business has a capable team, reliable earnings and processes others can follow.
What drives the value of your business
Every business is different, but the same factors come up again and again.
Owner dependency
How far sales, client relationships and decisions rely on you.
The management team
Whether capable people are ready to lead, with succession planned for key roles.
Quality of revenue
How much is recurring or contracted, and how predictable it is.
Customer concentration
How exposed the business is to losing one or two large customers.
Margins and reporting
How profitable the business is, and how clearly the numbers show it.
Processes and systems
Whether the business is documented well enough to be run, and examined, by others.
How we increase value
Where you are today
An indicative view of what the business is worth now and why. Where a formal valuation is needed, I work with your accountant or corporate finance adviser.
The priorities
We pinpoint the improvements with the greatest effect on value in your business.
The plan
Milestones, owners and a timetable that fits your intended exit or succession date.
Delivery and preparation
I work alongside you and your team to carry out the plan, track each value driver and prepare for succession or sale.
How we start
The Business Value Review
A fixed-fee assessment over three to four weeks. I review the business against the main value drivers, give you an indicative view of where its value stands today, and identify the gaps a buyer or successor would focus on.
You receive a written summary and a prioritised plan for increasing value, with realistic timescales. It is yours to keep, whether or not we work together afterwards.
Succession or sale
- Management buyout
- A successor as MD
- An investor
- Sale to a third party
Not every exit is a trade sale. Each route depends on the same foundations: a strong management team, reliable earnings and clear evidence of both. I’ll help you weigh up the options and prepare for the one that suits you best.
The role I take on: Fractional Exit Director
I lead the value-building plan alongside you and your senior team, working with your accountant, solicitor and corporate finance advisers as needed.
How dependent is your business on you?
The free Owner Dependency Scorecard asks 15 questions and takes about five minutes. You’ll get an instant score and a short report showing where to start.
Let’s talk
A 30-minute conversation is usually enough to tell whether this work is right for you. There is no obligation.
Or contact Chris Brown directly: 07557 952491 · sales@growthtoexit.co.uk · LinkedIn
Is growth the more pressing concern? See Growth and Scaling