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June 1, 2024

Maximise Your Business Shareholder Value in 2024

READ TIME - 3 MINUTES

In today’s issue, I’m going to share 3 powerful strategies that you can action in order to accelerate your business Shareholder Value for the remainder of 2024.Running a business in construction or manufacturing just seems to get harder and harder, so it's even more important now than ever to focus on increasing your business shareholder value and preparing for a “Capital Event” (a huge payday with a business sale and/or exit).Don’t be that person who runs a business with £1m+ sales but never realises the business full value when it comes time to sell!By implementing these 3 important strategies for the rest of this year, you'll accelerate your business growth and shareholder value, for a life changing capital event in 2025/2026.1️⃣ Shift Your Focus to Shareholder Value
As a business owner it’s easy to get bogged down by the traditional measures like sales, costs, and tender rates.As much as an investor/buyer would care about these, the true measure of your business's success lies in its shareholder value.This concept was driven home to me by a conversation with a seasoned investor, where he stressed the importance of focusing on metrics that investors value the most.He said, “Bradley, revenue is important, but what drives a higher sale price is the value a business offers to its shareholders. Investors want to see consistent growth in value, not just sales.”This advice has been pivotal in my approach to business and should be for you too.When you consistently work on increasing shareholder value, you build a more attractive business for potential buyers and set yourself up for a significant capital event.2️⃣ Build a Strong, Independent TeamOne of the biggest challenges business owners face is being too involved in day-to-day operations.This not only limits your business's growth potential but also makes it less appealing to buyers.Here’s my advice: build a strong, independent team.Think about it. If your business runs smoothly without your constant input, it’s more valuable. Buyers are looking for businesses that can thrive independently.To achieve this, start delegating effectively.Hire and train capable leaders in key areas of your business.Implement systems and processes that ensure consistent performance even in your absence.This will not only free up your time to focus on strategic growth but also significantly increase your business's attractiveness to potential buyers.3️⃣ Embrace Mergers and Acquisitions (M&A)One of the most effective ways to rapidly increase your business’s value is through mergers and acquisitions.M&A allows you to quickly scale your operations, enter new markets, and enhance your product offerings.It’s a powerful strategy to drive significant growth and shareholder value.Back in my days at the construction company I helped scale, M&A played a crucial role.We strategically acquired smaller businesses, bolting them onto our operations.This not only expanded our market presence but also significantly increased our value.In 2024, consider identifying potential acquisition targets.Look for businesses that complement your operations and can provide immediate value.This will not only accelerate your growth but also make your business far more appealing to potential buyers.Here's the short version:1️⃣ Focus on increasing shareholder value rather than just traditional metrics.2️⃣ Build a strong, independent team to enhance your business’s appeal.3️⃣ Leverage M&A to rapidly scale and increase value.Three strategic lessons, but an issue that will be very impactful if you understand how to use them.See you next week.

Whenever you're ready, there are 4 ways I can help you:

1. Join Our WhatsApp Group Join our free WhatsApp group for Construction Industry and Manufacturing Sector business owners.2. Want To Sell Your Business? If you're looking to sell your business then get in touch to arrange a chat. I buy businesses with revenues from £400k up to £30m+.3. Need A Growth Equity Partner? Accelerate the value of your business in as quick as time as possible, get in touch today.4. Are You A Distressed Business? If your business is in trouble, then getting the right help to turn it around is key. Cash Flow fixer & Business Turnaround expertise.