Identify Value Drivers
What Is a Firm Worth?
Values. What is your firm worth to an outside buyer or your succession team? What is the firm you are considering worth? The RVA is an expedited process to help firms measure value, assess succession capabilities, and evaluate their growth activities. It extends beyond standard industry metrics and identifies what increases or detracts from value.
Refinement. The RVA creates the roadmap a firm can take to make progress on key goals and strengthen its position. The RVA helps build up underperforming firms and makes stronger firms even better.
Realignment, Profitability, & Succession
Part of the RVA is to understand what drivers add to or detract from firm value. Once identified, your business development efforts may need to be realigned to bring in the type of clients and the fees needed to enhance firm profitability and value. Other outcomes include succession team development steps and potential immediate profit enhancement opportunities.
Drivers That Add & Detract Value
Beyond Metrics. Beyond basic drivers such as low profit or a dysfunctional culture, there are key elements we look at. Below are examples of positive and negative drivers.
Positive Drivers
- Revenue of $200,000 plus per professional
- High realized dollars per hour
- Well defined niches
- Diverse equity partner ages
- Strong supporting bench
Negative Drivers
- High number of stand-alone 1040s
- Low average 1040 fees
- No defined industry or service niches
- High number of billable partner hours
- Realization struggles
Explore Your Growth or Transition Options
Visionary is an industry leading consultant. We know how to build the enterprise value of a firm, source & close M&A transactions, address succession needs, and become the resource to help firms grow or transition.