Tech Acquisitions Heating Up Again - Do You Know Where Your Company's Value Is?
Just this week, Synnex and Tech Data merged to create a $57B distribution mega business. And as with any huge acquisition, we usually start to see a handful of smaller players follow suit as tech company owners start asking themselves "What is my business worth and where is the value?"
If you aren't sure what the market sees when the outside world looks at your business, you start investigating. Yes, revenue and margins play a part but that is only a piece of the puzzle. I always find it interesting when I ask dealers what makes them unique and valuable and without hesitation they reply "Our people make the difference!". This begs the question, do your people actually add value to your business?
Would a company looking to acquire your business see value in any of your people?
The reality is, if you are doing what most companies are doing, the company evaluating your business is putting no stock in your people and this is 100% in your control and 100% your fault if this happens. In fact your people may actually be diminishing the value of your business!
Where I see the greatest opportunity to move the needle for most dealerships is at the manager level. Remember, anyone looking to acquire your business is most likely doing so without you as part of the future. Take a look at your organization and honestly assess what you would pay for your business without you and the executive leadership team attached. If the answer is "not enough" you may have neglected to develop your management team or in some cases have hired or promoted people in managerial roles that lack the managerial skill set. How did they become managers? If the answer is they were really good in sales or service therefore we just promoted them to manager without ever evaluating their managerial skills we are doing them a disservice as well as those they are tasked with managing. These are the very people that you state are "the difference makers" and you may be right, however the difference they are making may not be the positive one you envision.
Bottom line, asses your managers honestly, provide them with the outline for what excellence looks like and help them develop their managerial skills. If you don't train and develop your managers you are directly responsible for lowering the value of your business.
If you are interested in learning more about what the essential skills your manager should possess and how you can help them develop these skills there are several things you can do next:
- Join us for our next Management Executive Briefing, the event is free for business leaders - REGISTER HERE
- Assess your business by taking the free CONTROL 365 Business Assessment. This 15 minute survey will provide you with a free customized Strategy Guide for your business that will clearly identify each area to focus on to maximize the value of your business.
- Schedule a call with me - I am always happy to talk with you about your business, provide any advice or recommendations and share my experiences as I navigated through these same challenges.