CVM: The Value Growth Company

Ken Sanginario Presents: Growing Value Versus Growing Revenue Revenue growth might seem like the ultimate goal, but Ken Sanginario, Founder of CVM: The Value Growth Company, knows better. With 40 years of experience helping businesses grow smarter, Ken will help you uncover the difference between growth that adds value—and growth that erodes it. Why Attend Ken’s Session? Learn how to avoid the pitfalls of revenue growth that can weaken your company. Discover real-world strategies and examples of sustainable value creation. Gain insights from the creator of the Value Opportunity Profile (VOP) and the Certified Value Growth Advisor (CVGA) training program. Meet Ken Sanginario - CVGA? CMAA CVA? CTP CPA ABV MSF Ken is a nationally recognized leader in value growth, M&A strategy, and business improvement. He has trained advisors across the country and helped countless private companies double or triple their value. When: February 13, 2025 Where: XPX Houston Summit, Houston Country Club This is your opportunity to learn directly from a pioneer in value growth. Don’t miss out! Register today: https://lnkd.in/gTzqKJSZ XPX - Exit Planning Exchange

Business Owners and CEOs - What’s your next big move? Whether it's scaling your business, preparing for a transition, or building a meaningful legacy, the XPX Houston Summit is the place to find ideas to drive your future success. We are looking forward to seeing you there! Date: February 13, 2025 Location: Houston Country Club This event brings together experienced professionals and business leaders to share insights and create growth opportunities. Register here: https://lnkd.in/gjUPTNTg

Deal Killers versus Value Killers - Project Moneyball Next week I have the privilege of presenting next to Ken Sanginario at the NACVA Business Valuation & Financial Litigation Conference in Las Vegas. In finalizing our presentation on the topic of "Leveraging Your Skills to Build Client Value and Create Market-Ready Businesses", we are going to focus on the company specific risks that can be categorized as Deal Killers or Value Killers. Exit Planning is about preparing a company and its owner(s) for a successful, future transaction. We will touch on Market and Owner Readiness, but the bulk of the presentation will be on company specific risk factors that can be improved to increase value and produce more successful transactions. The most common reasons why business transactions do not complete are: 1. Unrealistic Value Expectations of a Seller 2. The Company Does Not Perform During Diligence / Meet Forecasts Those are the two (2) most common but the list continues. Additional risk factors that are Deal Killers include: - Customer Concentration - Litigation - Competition - Supply Chain Issues - Financial Discrepancies in the Company's Accounting - Loss of Key Employee(s) [During the Process] Our overall point is that all of these issues can be addressed and planned for with enough time in an exit planning process. Beyond the Deal Killers are a significantly larger set of Value Killers. While a Deal Killer can derail a transaction leading to significant loss of time and money, Value Killers erode the price that a buyer might pay. Most private company sale transactions have a trading delta of nearly 100%. In other words a company in a similar industry, with roughly equal revenue and profitability, can trade for almost half as much (or twice as much, as the case may be) as a comparable business - the difference is in how Value Killers are handled in deals that do get completed. At the IEPA we are embarking on a year-long study with a dozen of our members. The goal is not only to understand why deals succeed and why they fail, but also to improve the marketplace by building exit teams that effectively reduce the risk of failed transactions while also driving value higher for exiting owners. We are calling this Project Moneyball. Just like in the book and movie by the same name, Peter Brand states to Billy Bean "Baseball thinking is medieval. They are asking all the wrong questions." Peter goes on to say "There is an epidemic failure within the game to understand what is really happening." We feel the same way about the market for exiting owners, with a documented failure rate for transactions of nearly 50%. Folks, we can do better. Hoping to see you in Vegas for a great discussion. Stay tuned as our special study group reports out progress over the next few months. Hope everyone had a wonderful Thanksgiving . . . I'm grateful to be back at it, snapping away my thoughts on this keyboard. Regards, John