Accretive Value

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Transforming Companies
Into Valuable
Acquisition Targets!

Grow the Intrinsic Value of your Business,
while Lowering Risk.

Our Promise:

2x Company Value
10x Transition Options

Our Process Will Deliver...

Improved Quality
Lower Risk
Higher Value
Better Options
Business SOLD

What they say about us...

jASEN-cOLDIRON-180x180
Jeff Farren provides the kind of strategic leadership all growth minded companies should be looking to leverage, regardless of the size and scope of the industry they are in. He has the ability to bring solutions for difficult problems to light in a way that encourages others to embrace the problem solving process even if they disagree with his specific suggestion; he is a facilitator of positive change.
Jasen Coldiron
Chief Operating Officer - Mainstreet
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Because of Jeff’s help, we were able to sell the company for about 5x EBIDTA. We would not have been in that position without the expertise and mentorship that Jeff brought to the team.
James Cowell
Owner - AppleCrossing.com
allison-180x180
We needed some strategic background and assistance with thoroughly understanding our financials and establishing short-term and long-term projections. Thanks to Jeff’s guidance, I have a greater peace of mind in knowing what our financial picture looks like and a greater understanding of where we are headed.
Alison Martin-Books
Chief Mentoring Officer - Diverse Talent Strategies
dianne-geddes
I felt overwhelmed and didn’t know how to go about resolving the growing accounting issues that were becoming obvious in my young startup business. Working with Jeff has allowed me to have confidence in our accounting program, focus on growing the business, and has helped me better manage the part of running a business as a new business owner that I was not familiar with, or felt comfortable with.
Diane Geddes
President/CEO - Repairmed
Greg-Profile2
We were not making strategic business decisions from solid planning. Jeff created a road map to financial strength that drives the company rather than hold it back. Having him on the team strengthens our foundation and increases our odds of hitting our business goals…out of the park.
Greg Huffman
Owner - Zoe Facility Services
todd-eaton
We were in the middle of being acquired and Jeff came in and helped us value our company with the current industry standard so we could determine a fair purchase price. During negotiations it became apparent that the acquirer was trying to cut our already negotiated price. If Jeff was not involved, we may have lost 250k on the deal. Our business sale has now been completed and we are moving on to a new chapter thanks to Jeff.
Todd Eaton
Owner - N2N Technologies
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I have worked with Jeff for many years and he has helped MBF with many facets of its financial health that have allowed us to grow exponentially.
Scott Callahan
Founder and Managing Director- Midwest Business Funding

The Value Builder Assessment

In just 13 minutes, your company’s Value Builder Score is calculated.  But what is the raw score telling you? The Value Builder Assessment provides the context to understand what the score reveals about your company’s current state.

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The Value Builder Assessment is delivered in a two-hour session, either in person or via Zoom.  A written report of findings and next actions is included…a roadmap to begin the process of creating a more valuable company.

Best results are achieved by engaging a Certified Value Builder™ to lead the company through the in-depth, 12-month Value Builder Process(optional).

Financial Performance Accelerator™

The most common weakness in growing companies is financial infrastructure.  Flaws manifest in inaccurate financial statements, no budgets or forecasts, lack of visibility into negative cash flow cycles…

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…all of which adversely impact the owner’s ability to take appropriate action. Access to growth capital is severely impaired in companies which lack these basic building blocks.

Accretive’s Financial Performance Accelerator™ is a 90-day consulting engagement led by Jeff Farren.   We will:

  1. Create a framework of Financial Performance Management to drive improved profitability, cash flow, and accountability of all team members.
  2. Coach and mentor the controller/bookkeeper to meet the reporting needs of the owner and all stakeholders, including timely and accurate financial statements.
  3. Reduce and minimize risk, which will lower the cost of capital.
  4. Prepare company for outside financing at the lowest interest rate possible.
  5. Other company objectives as mutually agreed.

Deliverables:

  1. Bi-weekly consultations with the business owner, to include other staff as needed.
  2. Budget and Rolling Cash Flow Forecast, with Budget-to-Actual reports.
  3. Value Growth Assessment Report, with action items to lower risk and improve the 8 drivers of company value.
  4. Value Growth Scenario Planning Tool, with multiple 'what if' scenarios.

The FPA will improve financial health and lower company specific risk.  This unique process leads to improved company value and increased financial options, including access to capital.

The Accretive
Process™

Most business owners don’t know and can’t measure the number one factor limiting the value of their business…company specific risk.  We have a proven process to improve the business quality from the inside out. 

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The result is a less risky company with much higher value.  Our quantifiable process helps companies double or even triple in value without increasing revenue.

The Accretive Process™ begins with a one-day management retreat, where a team lead by a Certified Value Growth Advisor will conduct a complete assessment of your company’s current state in all eight functional areas:  Planning, Leadership, Sales, Marketing, People, Operations, Legal, and Finance.  We utilize the VOP Engine, the most sophisticated value creation software ever developed.

The Accretive Process™ has three distinct phases:

Phase 1:  Protect

The VOP Assessment Report is delivered following the management retreat.  The current company state is compared to best in class quality standards, complete with current quality metrics and risk scores in over 160 subcategories of the eight functional areas described above. Specific action items are identified to protect the viability of the company.  These action items could be described as highest priority “must do’s” and can represent “low hanging fruit”.

Phase 2:  Enhance

A strategic planning session launches Phase 2 of The Accretive Process™.  Using the VOP Assessment Report as our guide, we develop a vision of the company’s future state and the specific steps to make it a reality.  The resulting strategic plan is a veritable Implementation Playbook.  Following this playbook, the company enhances its quality, performance, and value.

Phase 3:  Scale

Not every company, nor every owner, will choose this steepest path.  For the bold, a multi-year process is available to “step on the gas”, exploit the strong foundation that has been laid in Phase 1 and Phase 2, and maximize the value of your company.  A Certified Value Growth Advisor and Certified Merger & Acquisition Advisor will assist you as we Execute the plan, Prepare for and then Transition the company according the multiple options we have created.

The Accretive Process™

Do you know what is holding you back?

Most business owners don’t know and can’t measure the number one factor limiting the value of their business…company specific risk.

The Intrinsic Value of your business (and every financial asset) is the net present value of future cash flows.  To understand the distinction between Intrinsic Value and Transaction Value keep reading.

Is your business cash flow:

• Sustainable? 
• Predictable? 
• Transferable?

The Accretive Process identifies and measures the qualitative factors of the company which could impact its future cash flows, favorably or unfavorably.  The eight functional areas of every company are broken down into 160 subcategories and are measured against best in class standards.  Our unique, research-based algorithm converts quality and risk elements into a risk factor…the company specific risk premium.  This calculated risk premium is then blended to create the discount rate used to compute Intrinsic Value.

These quality and risk factors are within your control…you simply need some education.

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Any functional area of your company that is underdeveloped could put a lid on profitability and future cash flows, and therefore represents risk.  Furthermore, these company specific risks are controllable.  Management can reduce this risk by improving the business quality.

The first step in this process is identifying these limiting factors, so that an improvement plan can be implemented.  The Accretive Process delivers the playbook to execute that improvement plan.

Intrinsic Value

  • Similar to (or closer to) what a financial buyer would pay
  • Independent of type of future buyer
  • Controllable by owner
  • What the buyer GETS
  • Has value to current owner regardless of whether or not they sell the business
  • Allows owner to achieve the highest possible Transaction Value regardless of timing or type of buyer

 

Transaction Value

  • What a strategic buyer might pay
  • Determined by the type of buyer
  • Outside the control of the owner (except to the extent the seller can choose the buyer type)
  • What the buyer PAYS
  • Only has value if the business is sold
  • Highly dependent upon timing of the sale (hot or cold market)
  • Company is exposed to last minute erosion of price or terms between Letter of Intent
    and closing

 

Company Specific Risk

To calculate Intrinsic Value, the future cash flows are present valued using a discount rate.  The required return for Private Company Equity is

  • Required return for Public Company Equity plus:
  • Size Premium
  • Liquidity Premium
  • Company Specific Risk (50% – 66% of incremental return required for private companies) *

*BIGGEST IMPACT ON VALUE

 

We have a proven process to improve the business quality from the inside out.  The result is a less risky company with much higher value.

Our Promise of 2x Company Value may seem like a lofty goal, or maybe even a pipe dream.  You may be thinking that it is impossible.  In fact, many companies achieve 3x increase in company value after implementing our proven process.

If you are ready to take the next step click the button below to get started.

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