By Cheryl Powers

In a notable transaction last year, Darden Restaurants, the entity behind Olive Garden, disclosed its acquisition of Ruth's Chris Steak House for $715 million. This figure pegged the valuation at approximately one times the preceding year's annual revenue, translating to around ten times the adjusted EBITDA for 2022. While impressive for a corporation of its stature, the valuation metrics for Ruth's Chris may have been somewhat constrained by its absence of a recurring revenue ...

By Cheryl Powers

In business, bigger often seems better. We applaud companies bursting with staff and swelling their revenues year over year. But if you're steering your business toward the day you can sell it for a healthy profit, you'll need more than just piling on sales. You could be growing, sure, but not in ways that actually up your company's worth. Sometimes, this kind of growth could even hurt your value.

The Real Deal About Growth and Value

Let's get straight to the point: When th...

By Cheryl Powers

Thriving in your business isn't just about seizing the big opportunities; it's intricately linked to mastering the art of operational efficiency. In addition to helping you grow revenue, I want to help you see how fine-tuning your operations can significantly elevate your company's valuation, driving growth that outpaces the competition.

The Critical Role of Operational Efficiency

Operational efficiency is the backbone of your thriving company. It's about optimizing every fac...

By Cheryl Powers

At its core, customer capital is the value your business derives from its customer relationships. It's a facet of intellectual capital, transcending traditional business assets to include the intangible bonds your company fosters with its customers, members, and clients. 

The Role of Customer Capital in Business

Customer capital is a crucial element of your business's ecosystem, incorporating the total value derived from your company's relationships with your customers. As...

By Cheryl Powers

A Success Story from the Trenches: Breedlove & Associates' Journey

Imagine beginning a small payroll business from your home office, self-funding its growth, and then, two decades later, selling it for an astonishing six times the revenue. This is not a Silicon Valley fairy tale but the real success story of Stephanie Breedlove and her company, Breedlove & Associates. Starting in 1992, Breedlove grew her company by an average of 20% annually, focusing on a niche market - payro...

By Cheryl Powers

For a business owner or founder, the journey from inception to a profitable exit is like a masterful chess game, where strategic moves determine success. Let's begin with a story that resonates with many business owners. Imagine Sarah, who started her durable medical equipment business a decade ago. Last year, she decided to sell her business, expecting a lucrative deal given her impressive annual revenues. However, she was in for a shock when valuations came in far lower than ...

 By Cheryl Powers

If you’re like many of our business owner clients, your company is not just a source of income; it's your largest and most significant asset. Often, the value of your business comprises the lion's share of your personal net worth. 

Personal net worth represents the difference between an individual's assets and liabilities. For business owners, the equity value of their business often makes up a significant portion of these assets. However, it's not uncommon for owners to misj...