A ‘Business Value Gap’ is the difference between the value of your business today and what you need it to be at time of sale. A shortfall can have a significant impact on your retirement plans and may force you to reassess your desired standard of living in retirement. Worse case – it may mean you can’t afford to sell.
Retirement should be the best years of your life – the time for you to reap the rewards your
labour. As you approach retirement you need to determine your business value gap.
Business value gap analysis
Do you know?
- What your business value needs to be at time
- How many years it is until you can afford to
- A future profit target that provides you a
higher business value and a desired standard
Business value gap analysis is a simple process of determining your retirement income and assets, business value (current and future) and strategies to improve business profit and wealth.
Grow before you go
If your business value gap analysis reveals a shortfall in business value then you will need to implement business strategies to improve your profit before you sell. For example, improving your average sale per customer will increase sales, gross margin and net profit. Knowing what your business value needs to be means you can calculate your future profit, gross margin and sales targets.
Value gap analysis provides business owners and managers with peace of mind from understanding the direct connection between business value and a future standard of living at retirement.
Interested in how we can assist you to maximise your business value? Contact Nigel Mason of our office – (03) 9878 1477 .