Having worked in M&A for a long time, it is easy for people to have a fairly one-dimensional view of the industry. That our sole responsibility is to guide business owners to successful, fulfilling exits to optimal buyers.
Please don’t get me wrong – that is certainly a big part of the work we do at Generational Group. In fact, we recently surpassed a significant milestone by transferring over $6 billion in wealth to our clients over the years. But, this is just the culmination of a long, important journey.
Because M&A is not an event; it is a process. Yes, negotiating and closing the deal is the critical final step. But, in order to ensure that our clients maximize the potential of their exit, and don’t leave money on the table when they seal the deal, a lot of work needs to take place in the build-up to this moment.
That’s why I’m devoting this article to the service provided by our team at Generational Consulting Group (GCG) – helping our clients develop strategies to accelerate and structure the growth of their companies.
The Importance of Intentional Growth
Now, I haven’t met a business owner that doesn’t want to grow the revenue and earnings of their company. But, wanting to achieve this and having a clear, thought-out plan to secure intentional growth are two very different things.
While many entrepreneurs are true experts in their industry and understand it inside out, they will often run into challenges that cause them to plateau and fail to reach the next level. These reasons will vary from company to company, but most will encounter these hurdles and will need a strategy in place to overcome them.
This is crucial not only in making your company as profitable, efficient and successful as possible – something most entrepreneurs aspire to – but in the long-term this will play a definitive role in how fruitful your exit will be.
At Generational Group we often talk about the importance of building a buyer ready business. A business that demonstrates real potential to prospective buyers and reassures them over any areas of risk that they identify. An intentional growth strategy is key to achieving this status, and ensuring that your company’s value is at its peak when you decide to execute your exit strategy.
By introducing a documented plan of action that guides you towards both incremental and breakthrough growth, you improve your prospects of securing a premium offer for your company. Why is this?
- It enhances your company’s revenue and earnings significantly, which fundamentally means it is worth more on the market than it was prior to implementing the strategy
- It assures potential buyers that you have a strategy geared towards growth, which they can adopt and refine to make their investment worthwhile
- It gives you objectives and structure to your growth, so you can plan your exit in accordance with your financial ambitions
Essentially, intentional growth plans give you a definitive guide to push past the status quo and truly unlock your company’s potential – which will then improve your chances of an optimal exit that secures the legacy for you and your loved ones.
Pursuing Intentional Growth
When working with clients, our team at GCG apply two proven approaches, selected based on where the company in question is in their current growth cycle:
- Strategic Growth Plans
- Tactical Acceleration Plans
A Strategic Growth Plan is a 3 to 5-year strategy that focuses on long-term improvements. It gives you a consistent vision of where you want your company to be several years down the line, and outlines the steps that you will take to get there.
In developing a plan, our professionals analyze a company’s financials, culture, competitive advantage, SWOT, strategic identity, mega trends affecting future demand, performance and profitability of its customers, products and services. This, alongside an assessment of the company’s leadership, offers a complete overview of the current business situation, and what needs to be done to realize its full potential.
Conversely, a Tactical Acceleration Plan is more suited to an underperforming company that is looking for significant short-term improvement. These 3 to 12-month plans identify how profitability, cash flow and performance can be enhanced in a matter of months, helping the company transform a difficult situation into a prosperous one.
Again, our professionals will perform a concise analysis of a company’s financials, culture, leadership, strategy, operations, technology, performance and the profitability of customers, products and services, and use this insight to introduce techniques to achieve quick, meaningful results.
Both approaches are structured around the needs of the specific client, and offer expert guidance in how to boost business value in the pursuit of an optimal, fulfilling exit.
What Intentional Growth Could Mean for Your Business
This all sounds excellent on paper, but what does planning for intentional growth – and working with GCG – mean in reality? Well, I’ve compiled a collection of client reviews so you can see exactly what these strategies have meant to them and their companies:
Meridian Medical Service – A Structured Vision
In her role, Else Cole is always thinking about the future. But, GCG helped her put these ideas and visions into set boundaries, which will help bring these plans to fruition.
Over the course of several days, our team developed an actionable strategic growth plan that will achieve its destination in 3-and-a-half years.
Frick’s Quality Meats – More Assurance, Less Risk
Even though Frick’s Quality Meats has roots stretching back to 1896, Dave Frick knew there was potential to make the future even brighter than its past.
With a structured, coherent plan in place, Dave is now looking forward to accelerating company growth with more confidence, less risk and better buy-in.
My Local Plumber – Getting Off The Hamster Wheel
Tired of going round in circles, Denise Rodriguez turned to GCG to help capitalize on the incredible growth potential of her company.
In just a matter of months, the strategies proposed have made an immense difference to the speed, efficiency, productivity and promptness of the business.
VX Aerospace – Filling in the Gaps
VX Aerospace was a classic example of a business with excellent service that was struggling to sustain growth for the long-term.
By working closely with Bob Skillen and his team, GCG identified the weaknesses limiting their potential as a company, and came up with ways to correct these to spur consistent growth.
Over Under Clothing – Working Together to Grow
Finally, making intentional growth happen within a company requires everyone to actually enact the strategies and techniques that will make it a reality.
So, when Bryan Horn reached out to GCG, they conducted team-building exercises and really gained a strong understanding of his team’s capabilities and ambitions, ensuring everyone was aligned with their plans to pursue growth.
Make Intentional Growth a Priority
I hope you’ve enjoyed this introduction to intentional growth, and taken something away from the stories of business owners who are enjoying the benefits of these focused strategies.
Without a clearly defined roadmap towards growth, it can be a real struggle to maintain momentum in your business and avoid an inevitable plateau, regardless of how impressive your services and products are.
Introducing a tailored strategy that structures and navigates this growth over the course of months or years means that you can consistently build the value of your business – which will then be reflected in the offer you eventually receive when the time is right to exit.
It is never too early to form a framework for your company’s growth. Get in touch with the experts at Generational Consulting Group to discover what difference they can make to your company’s trajectory, and the financial legacy you leave behind.