“The decisions you make now determine the value you get later.”
This is a function of REVENUE (get big!) and the proper management of expenses & debt
Use the Growth Model Analyzer to align your expenses to Best Practices.
Continually assess the systems that Attract, Convert, Optimize & Retain customers
Use The ACOR Reporter monthly to reflect, clarify and improve those systems
If you have a marketer, use the ACOR Marketing Game Plan to clarify & collaborate on plans & progress
A business with a consistent record of growth is worth more to the buyer
(Use everything we teach that fits your business!)
Regardless of your 'strategic horizon', there are moves you can make immediately that will have a serious impact on your agency's valuation. Don't wait; start strategizing today. (See #12 below.) The decisions you make NOW create the value you get later.
Value is not negotiated at the boardroom table when you’re eyeball-to-eyeball with your buyer. Value is engineered in the real world relationship with your marketplace in the years leading up to the deal.
Understand how revenue and earnings determine your agency's value. Seek to increase your EBITDA to skyrocket your agency's equity value. Keep a tight rein on labor costs and always aim for efficiency. Revenue always matters as you create higher value. EBIDTA matters as you get closer to your magic date.
