I recently attended the 2017 Arizona Owners Forum, hosted by the Arizona Owners Forum Council in conjunction with the Exit Planning Institute (EPI).
Chris Snider, EPI’s founder and author of Walking to Destiny, a book about preparing businesses for acquisition, was the keynote speaker.
Similar to Arizona’s five Cs: copper, cattle, climate, cotton and citrus, Snider’s book contains his four Cs that drive a business’ value: human capital, customer capital, structural capital and social capital. The first three of those Cs are good self-descriptions.
It’s the intangible asset of social capital that grabbed my attention.
Snider says social capital is the heartbeat of a company, its culture and its image and reputation in the marketplace.
“Intangible assets are the direct drivers of businesses’ attractiveness,” he said.
That can mean millions when an owner goes to sell his or her business.
Does your company have an image that makes it attractive? Is there value in your company’s reputation? Is your business recognized as a community leader? Are you seen as a good corporate citizen? A “yes” to these questions creates tremendous value to a company’s overall worth.
Sixty-six percent of the 5 million baby boomer-business owners across the country will attempt to sell their business within the next few years.
Now is the time to implement a strategic communications plan that will position your company in the eyes of a potential buyer for a prime acquisition.