Have you ever felt a bit stuck in a bit of a rut in terms of how to grow and increase the value of your business? We get it, this particular aspect of business can be especially tricky, but it is important. Increasing the value of your business is important because it enhances financial security and provides more opportunities for growth and investment. A higher business value can attract potential investors, facilitate easier access to funding, and increase the overall stability and credibility of the business in the market.
This pursuit of increased value is a cornerstone of strategic business development. This is where Oakwood comes in; we’re the ally you need to steer your business towards growth and increased value. We operate as your strategic partner, offering years of expertise and knowledge from industry experts, as well as tailored solutions that propel businesses towards increased worth.
Creating a value strategy
Businesses often seek investors or potential buyers to scale their operations or take a leap to the next phase of growth. But what makes a business more appealing in the eyes of investors? The answer lies in painting an enticing equity story.
What is an equity story?
Before we dive too deep into how we help you create a solid equity story, let’s quickly define what it is. An equity story is a detailed narrative or presentation that a company or entrepreneur creates to showcase the investment opportunity they offer to potential investors. It encompasses the company’s history, current status, future plans, competitive advantages, market positioning, growth potential, and financial projections.
Investors want businesses with a compelling equity story that demonstrates growth potential, financial health, and scalability. This story encapsulates not just the current status but also a roadmap for future growth and sustainability.
How can we help you create an enticing equity story?
At Oakwood, the process begins with a meticulous analysis of the company’s financials, notably the EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation). By applying a multiple to this figure, Oakwood crafts strategies that are tailored to you and your company to increase both the value and the multiple.
Many businesses Oakwood has worked with initially possessed smaller numbers in terms of value and multiples. However, with our support, these businesses witnessed a transformational surge in value and multiples, showcasing the potential for exponential growth.
Valuation strategies beyond EBITDA
While EBITDA serves as a fundamental metric, it is just the beginning of our business valuation process. By holistically evaluating different facets—such as market multiples, discounted cash flows, or asset-based valuations—we can help you to craft a thorough valuation strategy.
Navigating the journey to increased value
One common mistake businesses make is seeking investment or considering a sale before reaching their peak potential. Timing is crucial, and it’s important to be prepared and optimise business performance before taking the leap. This is another area where we can help guide you to get the best results possible.
The importance of a growth strategy
In order to create a value strategy, you need to have a growth strategy in place too. “But I already have a business plan!” we hear you cry. Maximising a business’s value requires more than just a standard business plan—it demands a well thought out and compelling growth strategy.
At Oakwood we specialise in crafting growth strategies that encompass key elements such as high-growth metrics, sustainable revenue models, customer retention, managerial expertise, proven track records, and a clear roadmap for future growth. Without these your business cannot reach growth or attain its potential value.
By reinforcing the pillars of high-growth potential we help put businesses and their stakeholders in a more advantageous position to realise and capitalise on their true value.
Oakwood’s Strategy Away Day as a service
We take great pride in supporting businesses in developing and executing these growth strategies, which is why we’ve created our Strategy Away Day service. A strategy away day offers a unique chance to immerse yourself in objective thinking, with our role being to both challenge and refine your thought processes.
Our Strategy Away Days are structured to delve into three critical phases:
Vision for the future
- Define where you want your business to be.
- Chart the journey to get there, outlining ambitions, aspirations, and goals.
- Identify milestones and metrics for measuring success.
Strategy development
- Explore avenues of profitable growth.
- Assess the strength of your market proposition.
- Gather insights from customers to inform your strategy.
- Analyse your competitive positioning.
- Evaluate the scalability of your infrastructure.
Strategy execution
- Identify key initiatives and objectives.
- Allocate ownership and establish timeframes.
- Address potential risks and mitigation strategies.
- Develop a robust financial model aligned with your growth aspirations.
- Plan for shorter and longer-term organisational changes.
- Foster team alignment and engagement on the growth journey.
The Strategy Away Days offer a comprehensive framework for business growth, focusing on defining a clear future vision, developing robust market strategies, and executing these strategies effectively. This approach not only aligns the team towards common goals but also strengthens the business’s market position, infrastructure, and financial stability.
Ready to treble the value of your business? Fill out the form on our website to book an appointment or let’s talk on 01789 867686.
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