Smithtown, NY (March 9, 2018) — Business systems dealerships now have a way to clearly understand what factors determine the value of their business, and what they may do to increase that value before even discussing the idea of a sale. And that can all happen now with Prosperity Plus as a Certified Value Builder consultant.
The Value Builder System is a statistically proven methodology designed to improve the value of a privately held business. At the core of the system is The Value Builder Score, an evaluation system driven by an algorithm that evaluates a business on the eight core value drivers acquirers take into consideration when buying companies. The Value Builder Score gives a comprehensive assessment of the “Sellability” of a business, whether an owner wants to sell next year or just wants to know that he/she is building a valuable asset for the future.
To be certified for this system Jim Kahrs, president of Prosperity Plus, completed 16 hours of pre-course online study and then completed the two-day on-site certification training program. The training involved a combination of case studies, group exercises and hands-on work with all eight value drivers contained in the Value Builder System.
“The Value Builder System is exactly what many of our clients need,” Kahrs said. “It provides a proven path toward building value in a business. Having participated in nearly 200 transactions, I can say that there are too many dealership owners that don’t plan ahead for a business sale. Because of this, they leave a lot of money on the table.
“By using the Value Builder System we can literally walk a dealer through improving the key areas that determine value. I look forward to using this tool to enhance the value of our clients’ businesses and to provide them with a better understanding of how to prepare in advance for the business sale process.”
In addition to the certification program, Kahrs attended the annual Value Builder Summit. This two-day conference provided tools and insight to merger and acquisition specialists. It covered topics such as Understanding the Mindset of Business Owners, Planning for the Implications of the New Tax Law, and The Best Ways to Engage Private Equity Groups in the Acquisition Process. Attendees came from all over the world to participate in this event.
In reflecting on the summit Kahrs said, “This was a great two days. For me, the highlight of the summit was the panel of acquirers including private equity buyers and corporate buyers. They shared their insights on how they approach acquiring companies of different sizes. They also shared their thoughts on the current climate for acquisitions and how the new tax law comes into play. It was enlightening to hear strategies directly from the playbook of some large acquirers.”
In the coming weeks, Prosperity Plus will be rolling out additional information on the Value Builder System. Our offering will have three components. It starts with the Value Builder Questionnaire. This questionnaire can be filled out online by business owners in approximately 15 minutes. It provides a numeric score on each of the eight key drivers of value as well as an overall Value Builder Score. There is no fee to complete the questionnaire.
The next step of the process is a detailed assessment of the score. This is done in a one-on-one meeting where we review a 48-page report showing the results and outlining strategies for improving scores that fall below the desired level. The cost for this component of the program is just $500.
The third step of the process is an ongoing engagement designed to implement the strategies outlined in the assessment. The focal point of this engagement is a combination of one-on-one meetings with the use of a web portal that contains educational materials and exercises designed specifically to improve each driver of value. The portal also provides for full tracking of the action items of the program. The engagement is a one-on-one process led by Kahrs himself and tailored entirely to each participating business. The cost for this portion of the program is based on the exact needs of the client and begins at $995 per month.
Our goal in laying out the Value Builder System was to provide a highly specialized and successful program at a cost that could fit a dealership of any size. The combination of this system and Prosperity Plus’ industry knowledge will set a course for increasing value that no one inside or outside the industry can match.
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About Prosperity Plus
Based in Smithtown, NY, Prosperity Plus is a consulting company that services independent business systems dealers and independent service organizations throughout North America.
