@TheBusJourney #SMEJourney

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

www.shirlawscoaching.co.uk

jhenderson@shirlawscoaching.com

07817 745958

@TheBusJourney #SMEJourney

Questions for Jim?