We recently completed a business valuation and value gap analysis for Sally, a business owner operating a chain of retail outlets. Sally is intending to sell her business in a few years and retire. She’d made a guesstimate of the business’s value but wasn’t sure if it was accurate. It turned out it wasn’t accurate and Sally had over-estimated the value. This is not an uncommon scenario; we find that many business owners have unrealistic sale price expectations for their business.

Once we had an accurate valuation, we were able to determine a value gap between what the business is currently worth and what Sally needed it to be worth at the time of sale to achieve her desired retirement lifestyle.

Armed with this information, we worked together to formulate a value growth plan for the business and put in place strategies which would add value while eliminating the elements that were taking value away (value leaks).