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Liquidity Planning and Mirus’ Maturity Model

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In the current business environment, where volatility is the new normal, preparedness for both unexpected and significantly impactful strategic events can make the difference between meaningful wealth creation or destruction. Mirus has witnessed how this “new normal” has inhibited liquidity for the unprepared but has also created windfalls for companies that were prepared to exploit windows of opportunity when they unexpectedly opened. If you’re willing to read on, Mirus can help you, above and beyond telling you what multiple your company is worth based on revenue and EBITDA alone.

What if there was a way to bring a broader perspective on what drives value to your unique mix of operational, financial and strategic assets? What if there was a way to benchmark your operating experience against that of other business owners who have already been there; to focus on those value drivers most impactful to not only your exit value, but also improved current overall performance? And finally, what if you could identify the key players within your ecosystem and then build the initial bridges to the business most likely to pay you the highest strategic premiums?

Well, there is. To assist with liquidity planning and help you cope with economic volatility, Mirus has developed its own proprietary framework and empirical benchmarking model called the Maturity Model to help business owners look around the corner, be prepared for the unexpected and build a comprehensive plan for growth and future liquidity.

Beginning with the next blog post, I will socialize one of the numerous quantitative or qualitative key performance indicators (KPIs) contained in the model that in aggregate, and properly weighted, affect company value and can help a business owner develop a broader understanding of what drives exit value, so they can plan accordingly.

One such group of KPI’s relates to company maturity. When combined with traditional financial fundamentals and trajectory, the current outlook in the capital markets, potential buyer health and activity and the dynamics of your specific industry, these can form the foundation for sound strategic decision making, which can positively impact short term revenue/profitability, and long term value of business. If you’d like to review the Mirus ViewPoint on this topic, please click here.