The Capitus Value Enhancement Process

Definition of Value Enhancement: The process of the successful achievement of ownership financial and personal lifestyle goals.

Stage 1-Discovery

This first stage entails an objective assessment of ownership needs, wants and goals in concert with an evaluation of the current state of the company and its position on its business lifecycle.

Ownership needs to formally examine personal issues including but not limited to age, health, family dynamics, financial status, motivation, risk tolerance and timing.

The corporate evaluation should include an understanding of both the current state of the business with regard to the organization’s financials, value proposition, leadership, and strategic vision along with its needs based on where on the business lifecycle the company currently resides.  For example, is the company in a growth mode?   Or is it a mature company that may need some re-tooling?

The output of Stage 1 should be a set of personal ownership goals and an understanding of the current state of the company to assist in achieving these goals.

Stage 2-Options Assessment

Many times there is a disconnect between the ownership’s goals and the current state of the company.  It is at this juncture that more in-depth analysis on both sides of the equation must occur.

Assuming the delineation of ownership goals in Stage 1, there may need to be more in depth financial planning, investment evaluation and work on the personal, non-financial goals such as the role of family or even life after a transition.

With regard to the company, there may need to be a valuation performed and more in-depth analysis of both what will be needed financially from the company to meet ownership goals and how that affects non-financial ownership goals.  For example if an ownership goal is to work less but currently the company cannot provide the amount of financial goal desired and needs to grow,  then options need to be discussed to see if both can be accomplished.

The output of Stage 2 is a comprehensive delineation of realistic available options to achieve ownership personal and financial goals including their pluses and minuses.

Stage 3-Strategy

At this point of the process it is time to choose one of the options developed in Stage 2 and develop the Strategic and Tactical Roadmap (Plan) to get achieve the goals developed in Stage 1.  For both the corporate and the personal sides of the equation, internal and external resources and systems must be delineated that will be needed.

A formal process should be employed to determine specific corporate goals and prioritize the tactics in order of importance that are needed to reach these goals.  The same needs to occur if there are personal or family ownership issues that have to be resolved.

It is very important to find the right external advisors to put on your team.  This can include transition consultants, lawyers, CPA’s, financial planners, wealth advisors, investment bankers, insurance professionals and even psychologists on occasion.  Also many times internal corporate resources need to be developed or hired.

The output of Stage 3 is the delineation of specific tactical and strategic initiatives that are needed to successfully execute the option chosen in Stage 2 both from a personal and corporate perspective.

Stage 4-Execution

Now is the time for execution utilizing that the tactics and strategies prioritized in Stage 3.  An annual or even semi-annual reassessment is necessary however.  Personal and business environments and situations can change.  Ideally the option and path chosen should not change but the tactics, priorities and timeframes may need adjustment from time to time.  It is very important to utilize the skills of both your internal and external teams for best results.

There are many reasons to keep the execution process on track.  Some examples are:

• Piece of mind
• Increased corporate value
• Happier, more productive employees
• Healthier, more competitive company
• Vastly improved transition opportunities-Now or later

Successful execution will lead to enhanced corporate and lifestyle value and is the path to meet your personal goals!

– Transition Strategy & Solutions
– Corporate Value Enhancement
– Management Advisory
– Transition Peer Groups

Why Capitus is Different

– We are holistic in our approach. All Capitus advisors have owned businesses and experienced the growth and successful exits of businesses or managed similar ventures.

– We provide succession, transition and exit options to our clients

– We focus on value enhancement over time

Proven Processes and Tools

Discovery: Capitus Value Scan

Planning: Successful Planning Transition Institute ™

Value Enhancement: Value Opportunity Profile ™ (licensee)