Bridging the value gap
A value gap is the difference between what your business is worth today and what you need it to be worth to achieve your personal, family, and business life plans.
Knowing your value gap, and working on bridging it, is particularly important if you’re depending on your business to fund your retirement. When you know there’s a gap well in advance, you’ll have enough time to implement value creation strategies.
We have many clients who check the value of their business every year as part of their family wealth creation plan and to reduce their value gap risk. Using industry valuation benchmarks, we pinpoint areas where you can improve your business value. With ‘what if’ and ‘revaluation’ analysis technology, our Business Improvement advisors can create a plan for you to get to (or exceed) your desired business value.
Why Bridging the Value Gap Matters
Bridging the value gap is essential to ensure your business supports your long-term goals. For many business owners, their company is a cornerstone of retirement plans or family wealth. A proper valuation highlights the current worth of your business, showing where improvements are needed to reach your financial targets.
Regular business valuations give insights into your business’s strengths and weaknesses. They reveal the specific changes needed to increase its value, such as optimising profitability, reducing risks, or improving market positioning. At Marsh & Partners, our comprehensive valuation reports and industry benchmarks provide a foundation for these strategies, helping owners make informed decisions and maximise their business’s potential.
Key Strategies for Bridging the Value Gap
- Profit and Performance Optimisation
Improving profitability is a primary driver of business value. Marsh & Partners provides in-depth analyses that highlight where performance can be enhanced—whether through cost savings, operational efficiencies, or strategic growth opportunities. Optimising these areas can have a significant impact on closing the value gap. - Risk Management and Stability
Addressing areas of risk, such as reliance on key clients or suppliers, stabilizes your business and makes it more appealing to buyers or investors. Marsh & Partners’ valuations include risk assessments, providing insights into potential vulnerabilities. By diversifying income streams or securing supplier contracts, you can boost business stability and reduce the gap. - Growth and Expansion Planning
Expanding into new markets or broadening service offerings are proven ways to increase business value. Our advisors guide clients through growth strategies that align with market trends and competitive positioning. For example, we offer ‘what if’ analysis to simulate potential impacts of expansion, helping you assess and prepare for growth initiatives with confidence. - Succession and Exit Strategy
If you’re considering selling or passing down your business, a valuation from Marsh & Partners helps you understand the steps needed to achieve your ideal exit value. Our expertise in family law matters, shareholder disputes, and succession planning ensures that your business can transition smoothly while maintaining its maximum value.
Real Stories: Helping Businesses Bridge the Gap
Through annual valuations and personalised guidance, we have helped clients close their value gaps and achieve their goals. By working closely with owners, we pinpoint opportunities for value creation and provide support in executing these strategies. With the right advice and tools, bridging the value gap becomes a manageable and rewarding journey.
Start Bridging Your Value Gap Today
Bridging the value gap is an essential step toward achieving your business and personal financial goals. Whether you aim to sell, retire, or pass down your business, Marsh & Partners offers a comprehensive approach to maximising your business’s worth. Contact us to learn how our business valuation services can set you on the path to a successful, value-driven future.
