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Creating The Path To Higher Valuation with CEO/Partner Sean Hutchinson
Many business owners flinch when hearing the word “transition.” The reason is how, for so long, it has been associated with the death of the business. CEO and Partner of SVA Value Accelerators Sean Hutchinson says otherwise. In fact, he believes that it is the path to higher valuation, making the business more valuable. With his expertise on value acceleration and transition readiness for business owners around the country, he shares the reasons why equipping yourself with the succession tools are very important. Sean talks about the three buckets or classifications of business owners that represent different points along the journey to transition readiness: explorers, pivoters, and triggerers. Learn which among these you belong to as Sean gives the three ways that you can increase the value of your business.
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Creating The Path To Higher Valuation with CEO/Partner Sean Hutchinson
75% to 95% of the business owners’ net worth is tied up in their business, but only 10% have a plan for monetizing that net worth and only 20% will. On the show, we have Sean Hutchinson. He’s the CEO and Partner of http://buildvaluetoday.com/ (SVA Value Accelerators). Sean, welcome to the podcast.
Thank you, Bob.
Tell us a little bit about your business and who you serve.
Our business is about value acceleration and transition readiness for business owners around the country. We only work with private businesses. We don’t focus on the publicly traded market and we work mostly with Baby Boomers, with some exceptions, that are middle-aged folks moving into the later stage of their business career. One reason why we work with Baby Boomers so often is there are so many of them. It’s a demographic that’s unprecedented in the United States. 50% of the Baby Boomers are saying that they’re going to transition their ownership in their business over the next five years. The other 50% say within ten. It’s hard to match that up with market cycles and other things. We focus on getting them ready so that they can take advantage of the window of opportunity when it’s open. The businesses tend to be in six different industries for us because we have specialty practices but they’re revenue-wise maybe $15 million to $250 million.
However, that ideal customer question had us perplexed because when people would ask, “What’s your ideal customer?” we’d start answering it in the way that almost everybody else answers it. It was “In this industry with minimum of $15 million in revenue. Business is healthy, not distressed, and so on” One day in a strategic planning meeting when we had a new advisor come on board, he asked the same question. We started answering in the same way and then somehow the conversation just stopped and we all looked at one another and said, “If the client is the owner, why are we describing our client with data about the business? Why is that the profile?” It seemed like the wrong answer and so we created what we call Three Buckets, three classifications, of owners that we think represent different points along the journey to transition readiness.
Bucket number one is the explorers. Explorers are owners who are trying to get insights and information before they decide to engage in advisory programs. They’re trying to get some clarity before they decide to spend the money, spend the time, devote the resources, to doing value acceleration and transition readiness.
The second group is the pivoters. These are the folks who have probably been sitting on their hands for a while. Procrastination is something that we all have to overcome. Whether it’s because of a life event or something else, they wake up and say, “I’ve got to do something about this.” It could be because of a business event. Things aren’t going too well in the business o...
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By Bob Roark
5
1212 ratings
Many business owners flinch when hearing the word “transition.” The reason is how, for so long, it has been associated with the death of the business. CEO and Partner of SVA Value Accelerators Sean Hutchinson says otherwise. In fact, he believes that it is the path to higher valuation, making the business more valuable. With his expertise on value acceleration and transition readiness for business owners around the country, he shares the reasons why equipping yourself with the succession tools are very important. Sean talks about the three buckets or classifications of business owners that represent different points along the journey to transition readiness: explorers, pivoters, and triggerers. Learn which among these you belong to as Sean gives the three ways that you can increase the value of your business.
—
Watch the episode:
Listen to the podcast:
Creating The Path To Higher Valuation with CEO/Partner Sean Hutchinson
75% to 95% of the business owners’ net worth is tied up in their business, but only 10% have a plan for monetizing that net worth and only 20% will. On the show, we have Sean Hutchinson. He’s the CEO and Partner of http://buildvaluetoday.com/ (SVA Value Accelerators). Sean, welcome to the podcast.
Thank you, Bob.
Tell us a little bit about your business and who you serve.
Our business is about value acceleration and transition readiness for business owners around the country. We only work with private businesses. We don’t focus on the publicly traded market and we work mostly with Baby Boomers, with some exceptions, that are middle-aged folks moving into the later stage of their business career. One reason why we work with Baby Boomers so often is there are so many of them. It’s a demographic that’s unprecedented in the United States. 50% of the Baby Boomers are saying that they’re going to transition their ownership in their business over the next five years. The other 50% say within ten. It’s hard to match that up with market cycles and other things. We focus on getting them ready so that they can take advantage of the window of opportunity when it’s open. The businesses tend to be in six different industries for us because we have specialty practices but they’re revenue-wise maybe $15 million to $250 million.
However, that ideal customer question had us perplexed because when people would ask, “What’s your ideal customer?” we’d start answering it in the way that almost everybody else answers it. It was “In this industry with minimum of $15 million in revenue. Business is healthy, not distressed, and so on” One day in a strategic planning meeting when we had a new advisor come on board, he asked the same question. We started answering in the same way and then somehow the conversation just stopped and we all looked at one another and said, “If the client is the owner, why are we describing our client with data about the business? Why is that the profile?” It seemed like the wrong answer and so we created what we call Three Buckets, three classifications, of owners that we think represent different points along the journey to transition readiness.
Bucket number one is the explorers. Explorers are owners who are trying to get insights and information before they decide to engage in advisory programs. They’re trying to get some clarity before they decide to spend the money, spend the time, devote the resources, to doing value acceleration and transition readiness.
The second group is the pivoters. These are the folks who have probably been sitting on their hands for a while. Procrastination is something that we all have to overcome. Whether it’s because of a life event or something else, they wake up and say, “I’ve got to do something about this.” It could be because of a business event. Things aren’t going too well in the business o...