Ownership Transition

Maximize your Business Value

I enjoy working with Trilogy clients, helping them to better understand their financials to set strategy and drive growth. But what happens when owners want to exit the business? How can they ensure that they get the highest value for the business they’ve dedicated their life to build? As you may know, the industry standard valuation method is a multiple of a organization’s Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA). The objective of a company in the short-term is to maximize EBITDA any way possible, to improve its value. However, depending on your industry or business model, one may have to decide if EBITDA is the best strategy to value your business as demonstrated by these two examples: First, let’s look at MakeStuff, LLC, a manufacturing company that has […]

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Navigating your Family Business from Conflict to Accomplishment

When working with family members in business with one another, something reveals itself over and over – the ties that bind also serve as stress points for potential unraveling.  With expertise in group and family dynamics, conflict management, and behavioral science, I am often asked to provide consultation and coaching to Trilogy clients with family-owned businesses who recognize that “things could be better” from both business and personal perspectives.  Does your family experience any of these issues causing conflict and misunderstanding? Decisions about the future direction of the business. Differences in leadership styles, practices, and core business values. Permitting undesirable and potentially destructive workplace behaviors to (erroneously) maintain harmony. Differences in performance and time commitment. Compensation of those actively vs. passively involved in the business. Fairness, equity and expectations around […]

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Ownership Transition – Key Things to Consider

All of our clients own businesses, and a recent Washington Post article claimed that sales of small businesses hit a record high in 2016.  From time to time, business owners get to a point in their lives when they want to map out an effective exit strategy for at least two reasons: 1) they would like to enjoy themselves while they’re still in good health; and, 2) they want to ensure their company’s legacy for the sake of their employees (and customers). Trilogy Partners is currently working with a number of clients to transition business ownership either to internal hands (remaining owners, employees and/or relatives) or external hands (other companies or entrepreneurs).  In both instances, the owner is usually interested in maximizing the sales price, while also ensuring that the […]

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